BP to sell all of their Alaska assets to Hilcorp.

By |2019-08-27T10:48:55-08:00August 28th, 2019|Categories: News|Tags: , , , |15 Comments

Wait, what?

Courtesy of ADN:

The longtime operator of the giant Prudhoe Bay oil field told employees in a meeting Tuesday it plans to sell all of its Alaska assets to Hilcorp Alaska for $5.6 billion, a major shakeup in the Alaska oil industry.

BP shared the news with its 1,600 employees at its Anchorage headquarters.

The blockbuster deal includes BP’s stake in Prudhoe Bay, the 800-mile trans-Alaska pipeline, the Point Thomson and Milne Point fields, and leases in the Arctic National Wildlife Refuge, on land owned by an Alaska Native village corporation.

Hilcorp will inherit the BP building in Anchorage, where many of BP’s employees work, said Megan Baldino, a BP spokeswoman. The deal does not include oceangoing oil tankers owned by BP that move oil out of Alaska, though BP and Hilcorp are in conversations about those assets, Baldino said.

How BP’s employees will be affected is unknown, said Baldino.

“Hilcorp will have to come in, look at our business and determine what the organization looks like moving forward,” she said.

The proposed deal is subject to state and federal regulatory approval, but is expected to be finalized in 2020, she said. Changes are not expected in the next couple of months.

This comes as a huge surprise as BP has been up here working on extracting oil since 1977, and recently claimed they had a 40 year plan for Alaska oil exploration moving forward. 

My first thought is that they either have little confidence in finding enough oil in ANWR and the Arctic waters to justify staying up here or they have determined that the political winds are shifting and that access to some of these areas will no longer be available once the Democrats retake power in Washington. 

My gut suggests the second scenario, but I do not know for certain. 

Of course, I would love to see these oil companies all pack up and leave the state, though to be honest we would be fucked if that happened before we found another viable industry to keep the money flowing. 

About the Author:

This blog is dedicated to finding the truth, exposing the lies, and holding our politicians and leaders accountable when they fall far short of the promises that they have made to both my fellow Alaskans and the American people.

15 Comments

  1. Anonymous August 28, 2019 at 4:37 am

    “My first thought is that they either have little confidence in finding enough oil in ANWR and the Arctic waters to justify staying up here or they have determined that the political winds are shifting and that access to some of these areas will no longer be available once the Democrats retake power in Washington. ”

    lol. Neither. It is difficult for socialists to understand this kind of thing. It is nothing but a business decision, a complex business decision, yet that is all it comes down to.

    • 😆 August 28, 2019 at 7:00 am

      The banks audits have nothing to do with it! 😆

    • Whatevs August 28, 2019 at 1:50 pm

      Wow, what a fucktard response. Even a democratic socialist who is also a business owner knows that business decisions are based on exactly that – what are the possibilities of extracting profit. Not enough? No go and get out.

      But I see you didn’t offer any type of reason for “business decision.” What a shitty capitalist you are.

    • nanna August 28, 2019 at 2:21 pm

      Being there in the first place was nothing but a business decision, fuckwit. Leaving because of declining oil reserves is a business decision, fuckwit. Leaving because of a change in government policy is a business decision, fuckwit.

      Did you have a point, fuckwit?

    • Hey $arah August 29, 2019 at 4:25 pm

      Someone on ADN.com said that Hilcorp will sit on it.

      Zero revenues. Yawn.

      US Sanctions. 150+ years.

      Ouch.

  2. Anon August 28, 2019 at 7:03 am

    Watch the timeline of this ‘business transaction’ and Brexit ordeal. 😉

    Hello Queenie!

  3. $BM~JB$ August 28, 2019 at 8:09 am

    https://www.rawstory.com/2019/08/nyt-retrospective-on-tea-partys-10th-anniversary-overlooks-racism-and-the-koch-brothers-and-gets-it-exactly-wrong/

    The Tea Party grew out of the anti-tax movement of the early 1980s, when tobacco companies poured money into third-party groups to fight excise taxes on cigarettes, and to undermine research linking secondhand smoke to cancer, according to an academic study funded by the National Cancer Institute of the National Institute of Health. {R.J. Reynolds=Doral}

    The Kochs and CSE set up the first Tea Party Movement website in 2002, and their anti-tax organization eventually splintered into Americans for Prosperity and Freedomworks
    Racism, which goes completely unmentioned in the Times retrospective, was always at the core of the Tea Party movement.

    The GOP under Trump has fully embraced the racist and corporatist soul that animated the Tea Party — which has gotten everything it wanted, and an angry leader. aka $hitgibbon.

  4. anonymous August 28, 2019 at 10:14 am

    “BP has been paying tens of millions a year in a state oil and gas corporate income tax. State law would allow Hilcorp to avoid that tax when the company takes over the Alaska operations of BP. The loophole needs to be closed.”

    https://www.dermotcole.com/reportingfromalaska/2019/8/28/zhabi3ipu9oteyoigm5xjsmlgutm1x?fbclid=IwAR0pWhxG7XPT_dyxQa6OCZKHg8JlnvfE_5XLbltwiz4QJS6pGi4TvIWnA5s

    • nanna August 28, 2019 at 2:28 pm

      IMO the deal will cost more than $30 million in fees.

  5. The $$$$ question August 28, 2019 at 10:39 am

    Did Scarecrow have any stock in BP? I mean with her scheming. WHOse money was it?

  6. Whatevs August 28, 2019 at 1:54 pm

    Ding ding ding. We have a winner. And watch for individuals in BP to suddenly become partners in Hilcorp.

  7. nanna August 28, 2019 at 2:34 pm

    maybe the rate of melt in the arctic has BP all excited about sudden new fields to exploit while they still have a market.

  8. nanna August 28, 2019 at 3:57 pm

    Just as I suspected, BP have bigger and more lucrative fish to fry elsewhere. I still think that climate change has made that possible.

  9. Anonymous August 28, 2019 at 3:58 pm

    Is there a problem just over the horizon BP is aware of? Makes one think of Monsanto & Bayer and what is happening with roundup pesticide/herbicide. I am pretty sure we won’t get our act together on climate change so it is probably not that.

  10. Anonymous August 31, 2019 at 2:49 pm

    Could be the deal works for BP as far as debt load.

Comments are closed.