ConocoPhillips agrees to buy Chevron assets in two North Slope fields in $300M deal

ConocoPhillips Alaska will take a slightly larger stake in two Alaska oil fields by buying interests that belong to Chevron U.S.A. in an approximately $300 million deal.

Already the dominant oil producer in the state, ConocoPhillips will increase its interest in the Kuparuk River oil field by 5%, to the 94-99% range, including satellite fields, the company said.

ConocoPhillips will also buy Chevron’s small interest in the Prudhoe Bay field, increasing its stake by 0.4% to approximately 36.5%.

Chevron and its affiliated companies have been operating in Alaska more than six decades, Chevron spokesperson Paula Beasley said in an email.

It’s been looking to sell assets on the North Slope, including at the Endicott oil field, she said. Chevron’s stake in the Endicott field is not named as one of the assets that ConocoPhillips is purchasing.

As for the Kuparuk and Prudhoe Bay interests Chevron is selling to ConocoPhillips, the company looks “forward to obtaining regulatory approvals and closing by the end of 2024,” she said.

The transaction is expected to increase ConocoPhillips’ production by about 5,000 barrels of oil equivalent daily, ConocoPhillips said. The company produced about 175,000 barrels of crude oil daily in the first half of the year.

“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,” said Erec Isaacson, president of ConocoPhillips Alaska.