BP PLC (LON:BP) has agreed to revisions to the terms of its US$5.6bn Alaskan asset sale, with smaller payments now due from Hilcorp in 2020.
The overall deal consideration remains but now payments will be more staggered than originally envisaged.
In 2019, Hilcorp paid a US$500mln deposit and committed to paying US$4bn in ‘near term’ payments plus US$1.6bn in subsequent ‘earn-out’ payments.
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Describing the new terms, BP said the deal would include lower completion payments in 2020, new cash flow sharing arrangements over the near-term, interest-bearing vendor financing and, potentially, and higher earnout payments.
“The revised agreement is expected to maintain the majority of the value of the transaction,” BP said in a statement.
“It is also structured with flexibility to phase and manage payments to accommodate current and potential future volatility in oil prices.”
The Alaska sale is one part of BP’s US$15bn divestment programme targeted by mid-2021.
BP is due to release its financial results tomorrow (Tuesday 28 April).