Alaska has been instrumental in bp’s growth and success for well over half a century. bp’s rich history in the state includes drilling the confirmation well for the massive Prudhoe Bay oil field in 1968 and helping build the 800-mile Trans Alaska Pipeline in the mid-1970s.
In August 2019, bp signed an agreement with Hilcorp to sell its entire business in Alaska as it explores other opportunities that are more closely aligned with its long-term strategy and more competitive for its investment. The sale also supports the company’s two-year $10 billion divestment program to further strengthen its balance sheet.
“Alaska has been a core part of bp for 60 years and saying goodbye will not be easy,” says Janet Weiss, bp Alaska president. “Our people have achieved incredible success over the decades developing and maintaining these hugely important assets, but we are confident this sale is in bp’s and the state’s best interests and the business will be best positioned for the future with Hilcorp.”
With a long history of pioneering innovations in oil field technology at Prudhoe Bay, bp has continued using new strategies to extend the life of the field while reducing emissions.
While maintaining relatively consistent oil production levels over the past four years, bp reduced Prudhoe Bay’s greenhouse gas emissions by approximately 2 percent through project optimization.
In 2018, bp also completed some of the largest carbon credit offset projects in the nation with two Alaska Native corporations through the California Air Resource Board.
Carbon offsets are created through investment in activities that reduce greenhouse gas emissions or absorb carbon dioxide. In this case, the corporations agreed to manage their forestland to soak up CO2 from the atmosphere.
Beyond its operations, bp donated $4 million to organizations across Alaska in 2018, with employees supporting hundreds of education and community groups.