BP, Conoco are said to be in talks on North Sea, Alaska assets swap

BP Plc and ConocoPhillips are in discussions for an asset swap deal that would see the U.K. energy major gain a greater foothold in a key project in the North Sea and the U.S. explorer get Alaskan assets, according to people familiar with the talks.

BP is considering taking Conoco's 24 percent interest in the Clair field, in which BP already holds a 28.6 percent stake and is the operator, the people said, asking not to be identified because the talks are private. In exchange, Conoco is likely to take some of BP's assets in Alaska. BP describes Clair as "the largest undeveloped hydrocarbon resource" in the U.K. continental shelf.

The world's biggest oil companies, including BP, have largely been selling their aging North Sea assets as they move funds to areas where it's cheaper to produce oil and natural gas. Still, the region has seen a revival in recent years as new entrants infuse additional capital and fresh technology. BP itself has said it will focus on a few projects as it targets higher output.

No final decisions have been reached between the companies and talks could still fall apart, the people said. A BP spokesman declined to comment. Conoco is not looking to sell its U.K. North Sea assets, Chief Executive Officer Ryan Lance said at the company's annual general meeting this week.

Read more: https://www.chron.com/business/energy/article/BP-Conoco-are-said-talks-on-North-Sea-Alaska-12925033.php