April 27, 2020 / 8:36 AM / a month ago

BP revises terms of $5.6 billion Alaska sale as oil crashes

April 27 (Reuters) - BP said on Monday it had amended some financial terms of a $5.6 billion sale of its Alaska business to privately held Hilcorp to reflect the recent slump in oil prices.

The revised agreement retains the total consideration but adjusts the structure and phasing of the remaining payment, which includes smaller payments in 2020 and a new cash flow sharing arrangement in the near-term, the British oil major said.

The original agreement provided for Hilcorp to pay $4.0 billion near-term and $1.6 billion through an earnout thereafter. Hilcorp has paid a $500 million deposit on signing of the transaction in 2019, BP said.

The company continues to expect deal completion in mid-2020.

U.S. crude oil futures collapsed below $0 last week for the first time in history, dragged down by a supply glut and sagging demand for crude due to the coronavirus pandemic.

BP agreed to sell all its Alaskan properties, which includes interests in the most prolific oil field in U.S. history at Prudhoe Bay, and the 800-mile (1,300-km) Trans Alaska Pipeline, to Hilcorp Energy Co last year, exiting a region where it operated for 60 years. (Reporting by Tanishaa Nadkar in Bengaluru; Editing by Sriraj Kalluvila)

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