BP (LON:BP) has agreed an asset-swap deal with US energy group ConocoPhillips, the FTSE 100 company has said. The London-listed oil major is set to increase its share in the giant Clair field west of Shetland, while offloading its interest in Alaska’s Kuparuk field.
BP’s share price rose in the previous session, adding 1.43 percent to close at 581.40p. The stock outperformed the broader UK market, with the benchmark FTSE 100 index closing 0.60 percent higher at 7,593.29 points. The group’s shares have added just under 29 percent to their value over the past year, as compared with a near three-percent rise in the Footsie.
BP unveils asset swap
BP announced in a statement this morning that it had entered into agreements with ConocoPhillips that will significantly increase its holding in the Clair field, which the group argues is a core asset of its North Sea business in the UK. The oil major will purchase a 16.5-percent interest in the field situated west of Shetland in the UK, buying a ConocoPhillips subsidiary which will hold this interest in the field. As a result of the deal, BP will hold a 45.1-percent interest in Clair and ConocoPhillips will retain a 7.5-percent holding.
The FTSE 100 group will separately sell its entire 39.2-percent interest in the Greater Kuparuk Area on the North Slope of Alaska to ConocoPhillips, as well as its stake in the Kuparuk Transportation Company.
While the financial details of the deals were not disclosed, BP said that they are expected to be cash neutral.
Analysts on oil major
Barclays reiterated its ‘overweight’ stance on BP this week, valuing the shares at 690p, while Royal Bank of Canada, which sees the oil major as a ‘buy,’ set a price target of 675p on the stock. According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average price target of 591.58p.