State approves of sale of BP’s oil and gas leases to Hilcorp Energy Company
State officials have approved a $5.6 billion sale of BP’s oil and gas leases to Hilcorp Energy Company almost a year after the companies announced the sale, the Department of Natural Resources said Monday.
In compliance with state law, DNR had to evaluate the sale by inspecting Hilcorp’s financial statements and analyzing how the sale would benefit Alaska, the department said.
“After ten months of in-depth analysis, stress-testing of Hilcorp’s financial capacity to hold and operate these assets, and successfully securing secondary liability guaranties from BP, I am confident that the transfer of these leases and facilities both protects and advances Alaska’s interests,” DNR Commissioner Corri Feige said in a prepared statement.
The state Department of Environment Conservation was also involved in the evaluation through working on changes in environmental permits and approvals.
This is the last review the state will make on the sale although a review of the sale of BP’s assets in the Trans-Alaska Pipeline are still undergoing review, DNR said. Hilcorp will be evaluated on how fit, willing and able it is for managing BP’s midstream assets at the pipeline.
For more information about the sale, visit the state’s website