ConocoPhillips Acquires Chevron’s Remaining North Slope Assets
Photo Credit: Alaska Business
ConocoPhillips signed a $300 million agreement to buy some of Chevron’s last North Slope assets. Those include Chevron USA and Union Oil Company of California’s non-operated interest in the Kuparuk River Unit and the Prudhoe Bay Unit on the North Slope.
Adding 5,000 Barrels per Day
The deal comes after another attempt to purchase Chevron’s interests fell through. The Alaska Beacon reports that Texas-based Pontem Energy Capital sought to purchase Chevron’s interest in the Kuparuk pipeline and in the Prudhoe Bay Unit, but the company failed to close the deal. Industry watchdogs raised concerns that the privately owned company might not have financial reserves to pay for potential spill cleanup or other unexpected costs.
ConocoPhillips has plenty of financial wherewithal as the largest oil producer in Alaska. When the Chevron transaction closes, which is expected by the end of the year, ConocoPhillips Alaska’s working interest in Kuparuk will jump by about 5 percent, to between 94 and 99 percent of the unit, including its satellite fields. The ownership interest in the Prudhoe Bay Unit will jump by 0.4 percent to about 36.5 percent, or approximately equal to ExxonMobil’s share.
The transaction is expected to add an estimated 5,000 net barrels of oil equivalent per day to ConocoPhillips Alaska’s portfolio going forward.
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July 2026
“This transaction once again demonstrates our investment in the state,” says Erec Isaacson, president of ConocoPhillips Alaska. “In the first half of 2024, our investments in Alaska projects have exceeded $1.4 billion, underscoring our sustained commitment to Alaska for more than 50 years.”
It’s a year for strategic moves by ConocoPhillips. In May the company bought Marathon Oil Corporation for $22.5 billion in an all-stock transaction. Both companies are based in Houston, Texas. That purchase was expected to add more than 2 billion barrels of onshore resource to ConocoPhillips’ Lower 48 portfolio. That transaction is expected to close soon.
