ConocoPhillips Acquires Chevron’s Remaining North Slope Assets

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.