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BP to sell Alaska business to Hilcorp for $5.6B

Oil major BP p.l.c. agreed to sell its entire business in Alaska to Hilcorp Energy Co. affiliate Hilcorp Alaska LLC for $5.6 billion, according to an Aug. 27 release.

The deal covers BP's entire upstream and midstream business in the state and includes BP Exploration (Alaska) Inc., which owns the oil major's upstream oil and gas interests in Alaska and BP Pipelines (Alaska) Inc.'s stake in the Trans Alaska Pipeline System.

The $5.6 billion consideration is comprised of $4 billion payable near-term and $1.6 billion through earnout thereafter. The deal is expected to close in 2020, subject to state and federal regulatory approval.

BP said the transaction is in line with its plan to divest $10 billion worth of assets over 2019 and 2020.

"This transaction also underpins our two-year $10 billion divestment [program], further strengthening our balance sheet and enabling us to pursue new advantaged opportunities for BP's portfolio within our disciplined financial framework," BP CEO Bob Dudley said.