CPAI agrees to buy Chevron assets in Kuparuk, Prudhoe

Kay Cashman

Petroleum News

ConocoPhillips Alaska Inc. said Oct. 3 that it has signed a purchase and sale agreement to acquire Chevron U.S.A. Inc.'s and Union Oil Company of California's non-operated interest in the Kuparuk River unit and a portion of its non-operated interest in the Prudhoe Bay unit for approximately $300 million, subject to customary adjustments at closing.

The transaction is expected to close by the end of the year.

Upon closing, CPAI's working interest will increase approximately 5% to a range of 94-99% in the Kuparuk River unit, inclusive of satellite fields, and will increase 0.4% to approximately 36.5% in the Prudhoe Bay unit.

The transaction is expected to add an estimated 5,000 net barrels of oil equivalent per day to the company's portfolio going forward.

"This transaction once again demonstrates our investment in the state," said 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."

--KAY CASHMAN