BP. Bp Plc

   By Micah Maidenberg 
 

ConocoPhillips and BP are trading petroleum assets.

Houston-based ConocoPhillips (COP) said it will buy BP PLC's (BP) 39.2% interest in the Greater Kuparuk Area, an oil field located 40 miles west of Prudhoe Bay on Alaska's northern coast, as well as BP's 38% share of a pipeline operator, the Kuparuk Transportation Company.

At the same time, ConocoPhillips will sell BP a subsidiary that will hold a 16.5% share of the Clair Field, which is around 46 miles west of the Shetland Islands off Scotland. ConocoPhillips will retain a 7.5% interest in the Clair, down from the 24% stake it said it owned in its last annual report.

For ConocoPhillips, the deal is the second transaction this year that boosts its footprint in Alaska. Last month, the company closed on a $400 million deal for Anadarko Petroleum's 22% lease interests in a field on the Western North Slope in the state. This deal will give the firm more than 90% control of the Greater Kuparuk Area.

Prices for the latest transactions weren't disclosed. Both are expected to be "cash neutral" for both companies, ConocoPhillips said in a statement.

"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.

The deals are conditional on each other, and expected to close simultaneously pending regulatory approval.

A spokesman for ConocoPhillips declined to make further comment on the deal. A spokesmen for BP couldn't be reached.

The 39.2% interest in Greater Kuparuk Area had proved reserves associated with it of 190 million barrels of oil equivalent at the end of last year and produced 38,000 BOE a day, according to ConocoPhillips. The 16.5% interest in the Clair Field had 40 million BOE of proved reserves associated with it and produced about 3,000 BOE a day.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

July 03, 2018 17:35 ET (21:35 GMT)

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