More of Cook Inlet’s oil and gas resources are now in the hands of an independent oil and gas company.
Chevron and Hilcorp Alaska, LLC announced Tuesday that the Houston-based company is buying Chevron’s Cook Inlet oil and gas assets for an undisclosed sum.
The transaction is pending regulatory approvals, but the announcement said the companies expect the deal to close by the end of the year.
According to the companies’ announcement, production from the assets includes about 3,900 barrels of oil and 85 million cubic feet of natural gas, per day.
Hilcorp will receive all of Chevron’s oil and gas assets, including interests in the Cook Inlet Pipe Line Company and the Kenai Kachemak Pipeline, LLC. Interest in 10 offshore platforms, the Ninilchik Unit and Beluga River Unit onshore gas fields, two gas storage facilities and the Trading Bay and MacArthur River fields are among the assets included in the sale. The Nikolaevsk Unit, which Chevron’s subsidiary Union Oil Company of California has continued to pursue development plans for in the past few months, is also part of the sale.
Sen. Tom Wagoner, R-Kenai, issued a statement Tuesday afternoon welcoming Hilcorp to the inlet.
“Hilcorp is enthusiastic about the opportunities it sees in Alaska, and it has an aggressive plan to invest in required well maintenance and in-field drilling to restore and increase production from existing fields, as well as pursue the many exploration targets it has identified around the Cook Inlet basin,” he said.
Chevron’s assets have been on the table since October. The company will keep its North Slope assets.
Hilcorp currently operates in the Gulf Coast region, the Gulf of Mexico and the Rockies.