Hilcorp buying Eni’s Alaska North Slope heavy oil fields

Eni is selling its wholly owned Nikaitchuq and Oooguruk heavy oil fields—the only Alaskan assets listed in its 2023 annual report—to Houston-based private operator Hilcorp Energy Co. for an undisclosed price. The Italian energy company said the transaction maintains its strategy to rationalize upstream activities by rebalancing its portfolio and divesting non-strategic assets. Eni plans to announce the transaction’s value at closing, though analysts told Reuters the deal could be valued at $428-855 million.

The two fields, located in shallow waters of the Beaufort Sea just off Alaska’s North Slope, produced 20,000-22,000 boe/d in 2023, according to media reports. Oooguruk began production in 2008 and Nikaitchuq in 2011, with both fields reaching peak production around 2015-2016 and declining since then. Eni assumed full control of Oooguruk in 2019 after acquiring 70% WI from Caelus Energy.

Hilcorp is Alaska’s second-largest operator by production—behind ConocoPhillips—at 135,000 boe/d, from 1,700 producing wells on more than 950,000 gross acres. It entered the state in 2011 with its first assets in Cook Inlet and expanded to the North Slope in 2014. In 2020, it further expanded its holdings in the North Slope, including prolific Prudhoe Bay, through its $5.6 billion acquisition of BP’s remaining business in the state.

“In 2024, Hilcorp Alaska proudly made its largest-ever budget commitment to the state, and we are excited to further expand our presence on the Slope with this acquisition,” CEO Greg Lalicker said in a statement cited by the Alaska Beacon news outlet. He added, “The addition of the Oooguruk and Nikaitchuq assets seamlessly integrates with Hilcorp Alaska’s existing portfolio, presenting us with an exceptional opportunity to invest and optimize operations in a way that will drive increased production.”