BP ending its six-decade business in Alaska

BP announced Tuesday it has ended business in Alaska after six decades and will be selling all its operations in the state to Hilcorp, Alaska’s largest private oil operator, for $5.6 billion.

The sale encompasses all of BP’s existing pipelines and business interests in the state, including its stake in the Trans-Alaska Pipeline System.

BP CEO Bob Dudley said in a statement that “Alaska has been instrumental in BP’s growth,” but the London-based company is looking toward other opportunities in the U.S. and abroad as it reshapes. 

Dudley said the deal underpins BP’s plan to divest $10 billion by 2020.{mosads}

“Our exit from Alaska does not in any way diminish BP’s commitment to America,” Dudley said. “We remain very bullish on the US energy sector. In just the last three years we have invested more than $20 billion in the US and we will continue to look at further investment opportunities here.”

BP employs about 1,600 people in association with its Alaska business. BP said it is “committed to providing clarity about their future as soon as possible as part of the transition process with Hilcorp.”

Hilcorp has been operating in Alaska since 2012 and is the state’s largest private oil and gas operator. Hilcorp had purchased interests from BP in four Alaska North Slope oil fields in 2014. 

The deal is subject to state and federal regulatory approval.