BP recently confirmed its commitment to completing the sale of its Alaska business to Hilcorp. At press time, the parties expected to complete the transaction in June.

Reflecting recent significant market volatility, BP and Hilcorp have successfully renegotiated the financial terms of the deal to respond to the current environment. Under the revised agreement, the total consideration for the sale remains unchanged at $5.6 billion, subject to customary closing adjustments.

The original agreement provided for Hilcorp to pay BP $4 billion near-term and $1.6 billion through an earnout thereafter. Hilcorp paid BP a $500 million deposit upon signing the transaction in 2019. The revised agreement is expected to maintain the majority of the value of the transaction. It is also structured with flexibility to phase and manage payments to accommodate current and potential future volatility in oil prices.

For more information, visit www.bp.com or www.hilcorp.com.