Exxon Mobil Subsidary To Be Acquired By Hilcorp In Cook Inlet

Hilcorp Energy is continuing its aggressive push into Alaska’s oil and gas industry.

Hilcorp Energy has snapped up a deal with Exxon Mobil’s (NYSE:XOM) subsidiary division in Alaska for the purchase of the world’s largest oil and gas major’s Cook Inlet assets located in northern Alaska. Houston-based, Hilcorp is planning to buy two offshore platforms from Exxon Mobil subsidiary, XTO Energy, in addition to a tank facility and other offices in the island of Nikiski located in the Kenai Peninsula. The new asset facilities are located at Middle Ground Shoal Gas Field, owned by XTO Energy.

The deal represents another avenue for growth for the Hilcorp in the remotest US state region. After setting foot there four years ago, the business has seen its growth by leaps and bounds, and in that process made it the largest producer of oil and gas in the region in Cook Inlet. It further flexed its muscle by acquiring some fields from BP for its North Slope oil and gas business. It also had acquired two other facilities from BP for a 50% stake, bringing the total value of the deal at $1.5 billion.

Hilcorp says that they expect the latest round of acquisition to be finished before the end of this year, most likely around the fall, subject to regulatory approval. Once that is achieved, the energy company is expected to make an offer of employment to all of its more than 30 employees who work in the Middle Ground Shoal facilities.

This is not the first transaction by Hilcorp of XTO Energy’s assets, though. It acquired the company as a whole, five years ago, as part of more than $30 billion deal, though it did not acquire the company all in one round. Sueann Guthrie, who is the media advisor for the Fort Worth-based company, says that the move is seen as part of meeting the company’s operational and financial objectives, though the contents of the deal are still confidential.

On the other hand, Kim Jordan, Exxon Mobil Alaska public affairs coordinator, believes that the transaction will not influence the company’s LNG consortium project in Alaska, a $50 billion joint venture project that will see Exxon partner with state, as well as other local companies, to tap into the North Slope oil and gas reserves. The coordinator also confirmed that the transaction would be completed later this year, probably around the last quarter of this year.

Exxon Mobil’s stock price ended the day at $82.53, a decline of more than 0.70% the previous day.