Governor Responds to BP Asset Sale to Hilcorp

The Endicott field is located 3 miles off-shore of the North Slope, it was one of the fields sold to Hilcorp. Image-BP
The Endicott field is located 3 miles off-shore of the North Slope, it was one of the fields sold to Hilcorp. Image-BP

Governor Parnell, Monday, issued a statement after learning of BP’s announcement that they would be laying off a nearly a fifth of their workforce less than one month after voters took to the polls to defeat ballot measure 1. That ballot measure would have repealed Senate Bill 21 that would have taken back tax cuts given to the oil companies that was signed into law in June of 21013.

Governor Parnell said he was disappointed with the news, and said, “No one likes to see jobs reduced, and I am especially concerned about the disruption for families who work in the energy sector. But, the governor continued, saying, “When I spoke with BP Alaska President Janet Weiss today, she assured me that BP remains on track for the new rigs planned for the North Slope and for new investment promised to Alaskans.”

BP’s decision to lay off 475 of its employees and contractors comes as a result of the sale of four of its assets on the north slope to Hilcorp. That sale was announced in April of this year. In that deal, BP sold Hilcorp the Endicott and Northstar oilfields and associated assets and a 50% interest in the Liberty and Milne Point fields.

Approximately 200 of BP’s employees have been informed by Hilcorp that they will have jobs there if they chose to. The contractors have yet to be offered positions.

According to BP’s President of the Alaska Region, the sale  will allow BP to “be able to focus on maximizing production from Prudhoe Bay and advancing the Alaska LNG opportunity.” BP plans on adding two drill rigs, one in 2015 and an additional one in 2016.

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Parnell added, “With the strong employment picture in Alaska’s oil patch, I am confident that many of these valuable professionals will continue working, and they’ll be part of our growing economy.”