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Nikaitchuq, Oooguruk purchase from Eni cost Hilcorp $1 billion
Kristen Nelson Petroleum News
Eni said Nov. 4 that its sale to Hilcorp of 100% of its Nikaitchuq and Oooguruk has closed for a value of $1 billion, adding that the transaction had received approval of relevant authorities, and "is in line with Eni's strategy focused on the rationalization of the upstream activities of rebalancing its portfolio and divesting non-strategic assets." The company said it would continue to be present in the U.S. in the upstream Gulf of Mexico "as well as in energy transition projects in the renewables, biofuels and magnetic fusion."
Hilcorp did not comment on closure of the sale, but when the acquisition was announced in June, Greg Lalicker, chief executive officer of Houston-based Hilcorp Energy Co., parent company of Hilcorp Alaska, said: "The addition of the Oooguruk and Nikaitchuq assets seamlessly integrated with Hilcorp Alaska's existing portfolio, presenting us with an exceptional opportunity to invest and optimize operations in a way that will drive increased production. We will leverage our experience gained at Milne Point to further enhance the development of these assets, building upon the success achieved by Eni."
Also in June, Luke Saugier, senior vice president of Hilcorp Alaska, said: "In 2024 Hilcorp Alaska proudly made its largest-ever budget commitment to the state and we are excited to further expand our presence on the Slope with this acquisition. Drawing from our extensive experience and expertise gained at Milne Point and Prudhoe Bay, we are fully prepared to leverage our knowledge to drive success at Oooguruk and Nikaitchuq."
The company did not address the acquisition of Eni's Alaska assets on its corporate website, but did say that in the last 5 years it has completed more than $5 billion of oil and gas property acquisitions.
Regulatory approvals On Oct. 30 the Alaska Department of Natural Resources' Division of Oil and Gas issued assignment approvals transferring working interests in leases from Eni to Hilcorp in Milne Point, Nikaitchuq and Oooguruk. The Milne Point lease transferred from Eni to Hilcorp was added to the unit in May as part of the sixth expansion of the Milne Point unit -- it is on the northwestern edge of the unit adjacent to Nikaitchuq.
And on Nov. 1 Division of Oil and Gas Director Derek Nottingham approved the resignation of Eni U.S. Operating Co. as operator of the Oooguruk and Nikaitchuq units and designated Hilcorp Alaska as successor operator. Nottingham said Hilcorp executed the ratification and joinder unit agreement and unit operating agreement for development and operation of the Oooguruk and Nikaitchuq units, "thereby constituting their acceptance as successor unit operator."
That approval also includes the Milne Point unit, where Eni held 100% working interest ownership in two segments, the reason, Nottingham said, for inclusion of Milne Point in the request for resignation and designation of successor unit operator.
--KRISTEN NELSON
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