ANCHORAGE, ALASKA – ConocoPhillips Alaska, Inc. announced today 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 closing is expected by the end of the year.
When the transaction closes, ConocoPhillips Alaska’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.”
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About ConocoPhillips Alaska
ConocoPhillips Alaska has been a leader within Alaska’s oil industry for more than 50 years. The company is committed to operating with the highest safety standards, responsibly developing Alaska’s resources, promoting economic opportunity for Alaska, and being a valuable community partner. For more information, visit www.conocophillipsalaska.com.
Media Contact
Rebecca Boys (Alaska media)
907-227-8749
rebecca.a.boys@conocophillips.com
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changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East; our ability to collect payments when due, including our ability to collect payments from the government of Venezuela or PDVSA; our ability to complete the proposed acquisition of Marathon Oil Corporation (Marathon Oil) or any other announced or any other future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals, consents or authorizations for the Marathon Oil acquisition or any other announced or any other future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may be subject to conditions neither we nor Marathon Oil anticipated or may require modification to the terms of the transactions or our remaining business; business disruptions relating to the Marathon Oil acquisition or following any other announced or other future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; the receipt of other requisite approvals for the Marathon Oil acquisition, the satisfaction of other closing conditions on a timely basis or at all or the failure of the Marathon Oil acquisition to close for any other reason or to close on anticipated terms; our ability to successfully integrate Marathon Oil’s business and technologies, which may result in the combined company not operating as effectively and efficiently as expected; our ability to achieve the expected benefits and synergies from the Marathon Oil acquisition in a timely manner, or at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or insurance or significantly higher cost of capital or insurance related to illiquidity or uncertainty in the domestic or international financial markets or investor sentiment; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cybersecurity threats or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. 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