BP sells Alaska business for $5.6 billion to Hilcorp Energy Company

• BP began its business in Alaska state in 1959 and supported the build of the 800-mile-long Trans Alaska Pipeline in the mid-1970s.
• This agreement is just a part of the company’s plan to raise $10 billion by asset sales in the coming two years and further consolidate its balance sheet.

Oil giant BP will no longer operate its business in Alaska. The company sold all its operations in Alaska to Hilcorp Energy Company, one of the biggest productions and exploration companies in the United States. BP will sell all of its interests in Alaska for $5.6 billion to Hilcorp. The company had tensions with environmental groups that demanded it to stop drilling in the region, however, BP stated that its decision was not concerned with that topic. BP stated that this agreement was just a part of the company’s plan to raise $10 billion by asset sales in the coming two years and further consolidate its balance sheet. The remoteness and extreme cold weather in some regions of Alaska increases the cost of operation, making it difficult for firms to operate there. BP began its business in Alaska state in 1959 and supported the build of the 800-mile-long Trans Alaska Pipeline in the mid-1970s. BPs chief executive Bob Dudley stated that the company has other chances that are much closely aligned with company’s long-term strategy. Bob added that Hilcorp had the capability of maximizing its business value for Alaska. The funds raised from the sale would allow BP to chase novel advantaged opportunities. About BP: BP is a global energy business with a great reach around world’s energy system. The company operates in Africa, Asia, South America, North America, Australasia and Europe. BP serves in 78 countries across the globe. The company manufactures and sells raw materials and market fuels utilized in thousands of daily products, from mobiles to packaging of food.   Source Credit: https://www.bbc.com/news/business-49490451