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ConocoPhillips closes deals expanding Alaska foothold, shedding UK assets

ConocoPhillips announced Dec. 18 that it closed on separate transactions with BP PLC to simultaneously expand its Alaska footprint while shedding a portion of its assets offshore the U.K.

The Houston-based oil producer announced the deals on July 3, one to sell a 16.5% stake in Clair Field offshore northeast Scotland and the other to acquire an additional 39.2% interest in the Greater Kuparuk area along Alaska's North Slope along with a 38% interest in Kuparuk Transportation Co.

All of the deals were for an undisclosed price.

ConocoPhillips said it retains a 7.5% interest in Clair Field.

Year-to-date through Sept. 30, production associated with the acquired 39.2% interest in Kaparuk was 39,000 barrels of oil equivalent per day, while production associated with the divested 16.5% interest in Clair Field was 4,000 boe/d.

Based on Dec. 18 closing, ConocoPhillips expects the net contribution to fourth-quarter production will be less than 5,000 boe/d, an amount that was not included in prior fourth-quarter guidance.

However, ConocoPhillips included incremental production and capital from the deals in 2019 guidance the company released on Dec. 10.

The deal's are part of ConocoPhillips' strategy of shoring up its presence in Alaska. On June 4, ConocoPhillips closed on the $400 million acquisition of 1.2 million acres of exploration land from Anadarko Petroleum Corp. and said in July that it may spend up to $6 billion to develop and maintain North Alaska crude oil production.