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not in any way diminish BP’s com-
mitment to America.
‘We remain very bullish on the US
energy sector. In just the last three
years we have invested more than
$20bn in the US and we will con-
tinue to look at further investment
opportunities here.’
BP has spent decades drilling in
Alaska’s massive 214,000-acre Prud-
hoe Bay field, the most prolific in
US history, and has produced more
than 13bn barrels of oil, far exceed-
ing expectations of 9.6bn barrels. It
also helped build the 800-mile pipe-
line, one of the world’s longest.
The sale is the latest deal by oil
majors to rid themselves of conven-
tional assets, where rigs extract oil
and gas from large wells in the
ground. Many are now choosing to
focus on unconventional and oftencontroversial methods of extrac-
tion, like fracking, which can cap-
ture oil and gas trapped in previ-
ously unreachable spaces such as
between layers of shale.
BP is trying to sell £8bn of assets
by 2020 to fund the massive BHP
shale deal, agreed earlier this year,
as it shifts its focus towards uncon-
ventional oil and gas assets and
renewable energy.
Dudley said: ‘We are steadily
reshaping BP and today we have
other opportunities, both in the US
and around the world, that are
more closely aligned with our long-
term strategy and more competi-
tive for our investment.’
The Alaska sale, which includes
interests in four oilfields including
Prudhoe Bay, is still subject to US
regulatory approval and is due to
close next year.
Hilcorp, owned by Texan billion-BP quits Alaska
after 60 years
in £4.5bn deal
OIL titan BP is set to sell all
its operations in Alaska for
£4.5bn as it continues its
move away from conven-
tional oil and gas drilling.
Just months after the British
firm spent £8bn on BHP Group’s
shale oil and gas assets, it is dis-
posing of its interests in several
oil fields and the Trans-Alaska
pipeline to local firm Hilcorp.
The deal marks a major change
for BP, which began working in
Alaska in 1959 and is expected to
generate almost 74,000 barrels per
day from the US state this year.
But it throws the jobs of 1,600
staff into doubt. BP said it was
‘committed to providing clarity
about their future as soon as possi-
ble’, and chief executive Bob Dud-
ley said: ‘Our exit from Alaska does
by Lucy Whiteaire Jeffery Hildebrand, has
been operating in the state
since 2012 and employs 500
people there.
It specialises in pumping oil
from mature fields, and will now
take on the operation of Prud-
hoe Bay which last year pumped
out about 270,000 barrels a day.
The announcement came after
the stock market closed for the
day. BP’s shares were up 0.01pc
or 0.05p yesterday at 488.05p.Slump in German exports
A COLLAPSE in German
exports has left Europe’s largest
economy close to recession.
As storm clouds gather over
the global economy, sales of Ger-
man goods overseas fell 1.3pc in
the second quarter of the year.
It was the biggest decline in
more than six years and pushed
gross domestic product, the
total size of the economy, down
0.1pc. If Germany suffers
another contraction in the third
quarter, from July to September,
it will be in recession.
The UK also contracted in the
second quarter, with outputdown 0.2pc, but is expected to
bounce back in the third quar-
ter, avoiding a recession.
The pound rose sharply against
the dollar and the euro yester-
day on hopes a Brexit deal will
be struck. The slump in German
exports – a key driver of its econ-
omy – comes amid a hostile US-
China trade war.
Germany has also been hit by a
fall in demand for diesel cars
and uncertainty over Brexit.
A separate report showed busi-
ness confidence in Germany is
at its lowest level for nearly
seven years. Carsten Brzeski,chief economist at ING Ger-
many, said: ‘The short-term out-
look remains bleak. The German
economy is at a dangerous cross-
roads. The risk of another con-
traction in the third quarter and
hence a technical recession has
increased, not decreased.
‘The resilience of the domestic
economy against the industrial
slowdown and external woes has
only started to weaken since the
summer. While there could be a
rebound in construction, little
sign of exports rebounding sig-
nificantly make another stag-
nating quarter very likely.’TOPSHOP owner Arcadia will
press ahead with store clo-
sures and rent cuts after two
US landlords withdrew their
opposition to its plans.
The retail group officially
owned by Sir Philip Green’s
wife Tina said landlords had a
change of heart after ‘signifi-
cant and constructive dia-
logue’. It means Arcadia can
push its US subsidiary into
administration and close 11
Topshop and Topman stores.
The shake-up also includes 23
store closures in the UK,putting 1,000 jobs at risk.
Another 25 Miss Selfridge and
Evans stores are being closed,
while landlords of some shops
will get less in rent.
Initially, the meeting to dis-
cuss controversial proposals
for company voluntary
arrangements was adjourned.
Green (pictured with model
Kate Moss at the launch of her
Topshop range) and his wife
Tina later added amendments
to the proposals to win over
landlords and the plans were
eventually approved.Arcadia go-ahead for
administration in US
SPORTS Direct is on course for a shareholder
revolt at its annual general meeting after a
huge tax bill sparked an audit crisis.
Shareholder group Pirc wants five of the seven
board members to be voted out.
Sports Direct has spooked the markets by delay-
ing its annual results and disclosing a £605m Bel-
gian tax bill to auditors ‘at the eleventh hour’.
Shares are down more than 70pc since peak-
ing in 2014 and auditors Grant Thornton are quit-
ting after 13 years. Pirc has urged shareholders
to oppose the re-election of billionaire tycoon
Mike Ashley, the group’s chief executive and
major shareholder, chairman David Daly, and
three of its four directors: David Brayshaw, Rich-
ard Bottomley and Nicola Frampton.
Daly ‘doesn’t have sufficient experience in a pub-
lic company’ while Ashley has led an ‘aggressive
policy of acquisitions with doubtful results’, Pirc
said. Sports Direct was contacted for comment.Mike Ashley faces
investor rebellion
BUSINESS supplier Bunzl is in takeover talks
with ‘a number’ of targets despite warning of dif-
ficult trading ahead.
The FTSE 100 group has a track record of grow-
ing through acquisitions and has already spent
£98m this year buying US safety clothing and
equipment maker Liberty Glove & Safety and
Dutch packaging supplier Coolpack.
It sells products companies need to do business
but do not sell directly to customers, such as
cleaning gear, food packaging and hard hats.
Chief executive Frank van Zanten said: ‘We have
a strong balance sheet and are in active discus-
sions with a number of acquisition targets which
we anticipate will result in additional deals.’
Sales rose by 4.3pc to £4.5bn in the six months
to June 30 compared with the year before.
When currency changes are stripped away, reve-
nue rose 1.2pc. Revenue in the UK and Ireland
shrank 3.7pc to £603m, which it put down to a
slowdown in construction activity.
Group profits rose 1.6pc to £201m.Bunzl seeks out
takeover targets
(^) Daily Mail, Wednesday, August 28, 2019