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LONDON (Alliance News) - BP PLC on Wednesday confirmed its plans to increase share in offshore Clair field and sell interest in Alaska's Kuparuk field as part of asset-swap deal with ConocoPhillips.
Late Tuesday, The Financial Times reported that energy giants intend to exchange assets in a "cash neutral" agreement.
The British oil & gas company said it will increase holding in its core North Sea asset, the Clair field, by 17% after purchasing ConocoPhillips' subsidiary that operates in west of Shetland, UK. Following the transaction, BP's interest in the area will grow to 45% while the US oil company will retain a 7.5% stake.
BP said Clair field reservoir is estimated to have more than 7 billion barrels of hydrocarbons originally in place. The company begun production at the field in 2005 and in 2017 produced on average 21,000 barrels of oil equivalent a day.
The FTSE 100-listed company said it continues field development and upon completion of second phase, it expects Clair Ridge to reach production capacity of 120,000 barrels of oil equivalent daily. The company also plans future stages of development.
Under a separate agreement, BP has agreed to sell 39% interest in the Greater Kuparuk area on the North Slope of Alaska as well as its entire holding in the Kuparuk Transportation Co.
The Greater Kuparuk area includes the Kuparuk oilfield and the satellite fields of Tarn, Tabasco, Meltwater, and West Sak. In 2017, the Greater Kuparuk area had average daily oil production of 108,000 barrels.
The company said it expects both transactions to complete in 2018 upon receipt of State of Alaska, US federal and UK regulatory approvals.
"This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth," said BP Upstream Chief Executive Bernard Looney.
"Clair is a key advantaged oilfield for our North Sea business, a giant resource whose second phase is about to begin production and which holds great potential for future developments," added Looney.
Shares in BP opened 0.2% lower on Wednesday at 580.00 pence each.
