BP plc (NYSE:BP) has finally broken its silence revealing the plan to sell its Alaskan assets toHilcorp Energy. It is a deal that will see the company obtain $5.6 billion. The business guru has been running its business operations in the region for over 60 years. It is now time to go in pursuit of other business opportunities.

The deal

The company has mentioned the trans-Alaska pipeline system, Point Thomson gas field, and the Prudhoe Bay oil field. It says that the sale includes the interest it obtained from the sale of the above-mentioned assets. This announcement was made on Tuesday.

Energy analyst Phil Flynn has spoken in relation to the latest development. Numerous changes occurred from the time Bob Dudley took up the position of the company’s chief executive. One characteristic attribute is the way the business guru has been shedding its older fields. The company has also been shedding those it considers more efficient and expensive.

The president of Hilcorp Energy Co Jason Rebrook also spoke on behalf of his company. He outlined that they had the potential to make mature basins spring back to life. He says they have been eyeing Alaska’s Cook Inlet and the North Slope and got great plans. The official is counting on the local workforce, terming it an important ingredient of the overall success.

Requirements and thoughts from the leaders

However, it is worth noting that approval from the federal government and the state will be necessary. The recent unfolding happens around a time when BP has been making efforts to divest about $10 billion of its major assets. It hoped to be done with the exercise by 2020.

A former federal coordinator for Alaska gas projects Larry Persily has also aired out his thoughts. He congratulates Hilcorp outlining that it made the right decision of settling on projects others weren’t confident enough to undertake. According to the official, Hilcorp has taken advantage and wrung more money from the dealings.

However, the official admitted that they were not even one of the major businesses showing interest in purchasing BP assets. He revealed that BP hadn’t been undertaking its exploration activities for over the past four years.