BP announced yesterday it will sell interests in four Alaska North Slope assets to Hilcorp, a comparatively small, independent, Texas-based operator. BP says the divestment will help focus on increasing output from the giant Prudhoe Bay field and an ambitious LNG export project.

“There are some big benefits from this transaction,” said Janet Weiss, President of BP’s Alaska Region. “BP will be able to focus on maximizing production from Prudhoe Bay and advancing the Alaska LNG opportunity. Hilcorp takes ownership of two mature oil fields ready for new investment and activity, and it will operate a third field that is primed for accelerated production. And, the state gets another accomplished operator working the North Slope. Thanks to tax reform, Alaska is now on course for increased investment and production and even the possibility of LNG.” – BP

Developing a Northern Alaskan LNG export project will require gargantuan financial and technical effort, so this announcement is good news for the proposed facility and associated infrastructure. Read more from Breaking Energy on that here.

The company also referenced the decades-long tussle between the Alaskan government and oil producers over the state’s tax regime, which was amended in a manner more favorable to oil companies last year. Read more on that here and here.