ConocoPhillips Signs Agreements to Sell 16.5 Percent Interest in the Clair Field in the United Kingdom and Acquire an Additional 39.2 Percent Interest in the Greater Kuparuk Area in Alaska
ConocoPhillips (NYSE: COP) today announced that it has entered into an
agreement to sell a ConocoPhillips subsidiary to BP for an undisclosed
price. The subsidiary will hold a 16.5 percent interest in the
BP-operated Clair Field, with ConocoPhillips retaining a 7.5 percent
interest in the field. The sale is subject to regulatory approval.
ConocoPhillips also announced it has entered into simultaneous
agreements to acquire BP’s 39.2 percent interest in the Greater Kuparuk
Area in Alaska and BP’s 38 percent interest in the Kuparuk
Transportation Company for an undisclosed price. The Greater Kuparuk
Area acquisition is subject to co-owner pre-emption rights and both
acquisitions are subject to regulatory approval.
These transactions are inter-conditional and expected to close
simultaneously following regulatory approvals. Excluding customary
adjustments, the transaction prices are expected to be cash neutral to
both companies. The effective date for the transactions will be July 1,
2018.
“These transactions are significant for ConocoPhillips because they
continue our strategy of coring up our legacy asset base in Alaska,
while retaining an interest in the Clair Field in the U.K.,” said Ryan
Lance, chairman and chief executive officer. “We have a long history of
creating value in Alaska and an ongoing commitment to invest in our
legacy assets, as well as in the development of our recent exploration
success. Likewise, we are committed to maximizing the value of our
assets in the U.K. North Sea, including continued investment in our
operated assets in the Central North Sea.”
Full-year 2017 production and year-end 2017 proved reserves associated
with the 16.5 percent interest in the Clair Field were approximately 3
thousand barrels of oil equivalent per day (MBOED) and approximately 40
million barrels of oil equivalent (MMBOE), respectively. Full-year 2017
production and year-end 2017 proved reserves associated with the 39.2
percent interest in the Greater Kuparuk Area were approximately 38 MBOED
and approximately 190 MMBOE, respectively.
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 17 countries, $71
billion of total assets, and approximately 11,200 employees as of March
31, 2018. Production excluding Libya averaged 1,224 MBOED for the three
months ended March 31, 2018, and proved reserves were 5.0 billion BOE as
of Dec. 31, 2017. For more information, go to www.conocophillips.com.
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