BP and American energy giant Conoco Phillips have struck a deal that will see the former take a 16.5 per cent stake in its core oil field in Shetland well selling off interest in oilfields in Alaska.
The giant Clair field west of Shetland, Scotland, is thought to have housed more than 7bn barrels of hydrocarbons, the components used to make crude oil, and now produces on average 21,000 barrels of oil equivalent each day.
The Greater Kuparuk Area is operated by ConocoPhillips Alaska and in 2017 had an average daily gross oil production of around 108,000 barrels a day.
BP's sale of its 30. 2 per cent non-operating interest in the Kuparuk field in Alaska is expected to be cash neutral for BP. No other details have been released.
The 16.5 per cent purchase will mean BP will hold a 45.1per cent interest in Clair and ConocoPhillips will retain a 7.5 per cent interest.
The transactions will be subject to approval from the State of Alaska as well as UK and US regulators, with the process expected to be completed later this year.
BP Upstream chief executive Bernard Looney said: “This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth. 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.
“In Alaska, this transaction will increase our focus on managing our deep resource base at the massive Prudhoe Bay oilfield and help enable a more competitive and sustainable business for BP."