In July 2011, Hilcorp Alaska LLC and Chevron’s wholly owned indirect subsidiary, Union Oil Co. of California, began the process of transferring Union’s oil and gas assets located in Cook Inlet to Hilcorp, with Hilcorp assuming operation of these assets on Jan. 1. The amount of the sale was not disclosed. Hilcorp Energy Co., which is the parent company of Hilcorp Alaska LLC, was founded in 1989 by Jeffery D. Hildebrand and a partner whom he later bought out. It is now the third largest privately held oil and gas company in the United States. Headquartered in Houston, Texas, the company has operations in Texas, Louisiana, the Gulf of Mexico, Wyoming, Colorado, Mississippi, Alabama and now Alaska. According to the company’s website, its mission is “to efficiently develop energy that would otherwise be lost while providing an enjoyable and challenging work environment where long-term personal wealth can be created for all.”
Assets in the sale include Union Oil contracts and interests in the Swanson River, Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields; interests in 10 offshore platforms; interests in onshore gas fields including the Beluga River Unit and the Ninilchik Unit, which will still be operated by Conoco Phillips and Marathon Oil, respectively; and two gas storage facilities. Current net production from these assets is roughly 6,400 barrels of
oil and 74 million cubic feet of natural gas per day. The sale also includes interests in the Cook Inlet Pipe Line Co. and Kenai Kachemak Pipeline LLC. According to Barnes, Hilcorp has added 235 new Alaska employees in Anchorage and Kenai to its rosters, in addition to the 735 employees that it employs in the Lower 48. “We’ve hired a lot of great employees, as well as retained a significant portion of Chevron staff with the goal of building a great team,” Barnes said.
Hilcorp continues to grow by actively acquiring and developing conventional assets while expanding its footprint into a number of new resource plays. In recent rankings of privately held US producers by IHS Herold Inc., in 2010 year-to-date production ranked by barrels of oil equivalent (BOE), Hilcorp was third with 28.8 million BOE and 1,788 wells. The company prides itself on excelling in the core competencies of engineering, geological expertise and operational excellence. “While this is our first foray into Alaska, the purchase of the Cook Inlet assets fits our business model very well,” said John A. Barnes, senior vice president of exploration and production in Alaska at Hilcorp Alaska LLC. “Our success has been built on the acquisition and development of mature legacy oil and gas fields; areas where we know that the oil is in place, and we are able to produce the remaining oil. This is our bread and butter.” www.akbizmag.com • Alaska Business Monthly • April 2012
Published on Apr 1, 2012
Published on Apr 1, 2012
Alaska Business Monthly’s 2012 Corporate 100 annual special section begins on page 86. Top citizens of industry are highlighted in this annu...