BP BP Plc

By Matteo Castia

BP PLC confirmed Monday its expectations to complete the disposal of its Alaska business to Hilcorp Energy Co. in June for $5.6 billion, and that it has agreed to new adjust some terms of the deal to reflect current market conditions.

The British energy giant said the total consideration remains intact under the newly renegotiated terms, while payment phasing has been made more flexible due to the current volatility in the oil market.

Specifically, the deal includes lower payments this year and an increased portion of the consideration subject to earnout, the company said.

The original agreement provided for Hilcorp to pay $4.0 billion in the near term and $1.6 billion through an earnout thereafter, with a $500 million deposit paid last year upon signing of the deal.

Write to Matteo Castia at matteo.castia@dowjones.com

(END) Dow Jones Newswires

April 27, 2020 03:10 ET (07:10 GMT)

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