BP BP Plc

By Oliver Griffin

BP PLC (BP.LN) on Tuesday said it has agreed to sell all its interests and operations to Hilcorp Energy Co. for $5.6 billion.

The British integrated energy company said it has agreed to sell its entire business in Alaska to Hilcorp's division in the state as it makes progress in its $10 billion divestment program.

BP said it will sell its entire upstream and midstream business in Alaska, including interests in the Prudhoe Bay field and Trans Alaska Pipeline.

Chief Executive Bob Dudley said: "Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company."

Mr. Dudley said that efforts to reshape BP meant that other interests around the world are more closely aligned to its long-term strategy.

Under the terms of the deal, Hilcorp will pay $4 billion in the near term, followed by $1.6 billion in earnout later on. The transaction is expected to be completed in 2020, BP said.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

August 27, 2019 13:47 ET (17:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.