BP in talks for Conoco’s UK field stake in swap

Bloomberg

BP Plc and ConocoPhillips are in discussions for an asset swap deal that would see the UK energy major gain a greater foothold in a key project in the North Sea and the US explorer get Alaskan assets, according to people familiar with the talks.
BP is considering taking Conoco’s 24 percent interest in the Clair field, in which BP already holds a 28.6 percent stake and is the operator, the people said, asking not to be identified because the talks are private. In exchange, Conoco is likely to take some of BP’s assets in Alaska. BP describes Clair as “the largest undeveloped hydrocarbon resource” in the UK continental shelf.
The world’s biggest oil companies, including BP, have largely been selling their aging North Sea assets as they move funds to areas where it’s cheaper to produce oil and natural gas. Still, the region has seen a revival in recent years as new entrants infuse additional capital and fresh technology. No final decisions have been reached between the companies and talks could still fall apart, the people said. A BP spokesman declined to comment. Conoco is not looking to sell its UK North Sea assets, Chief Executive Officer Ryan Lance said at the company’s annual general meeting this week. “Unless formally announced by the company, we don’t comment on business development activity,” Emma Ahmed, a spokeswoman for Conoco, said by email.