(SitNews) – Yesterday, Governor Mike Dunleavy established the Governor’s Oversight Committee on the BP-Hilcorp Transaction. The purpose is to make sure the State of Alaska and its people are represented as this transaction moves forward. The Committee will provide the Governor with oversight and updates on the transfer as it moves ahead in the new year.

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“This transaction represents a new era for Alaska’s North Slope, so it’s important that we fully understand the benefits and any potential impacts on Alaskans and the state’s most important industry in terms of revenue and jobs,” said Governor Dunleavy. “Oversight, review and approval of the transaction are the state’s responsibility and we will ensure it is done to the highest possible standards.” 

After 50+ years of successful operations in Alaska, BP announced the sale of their North Slope oil and gas production assets to Hilcorp on August 27, 2019. Following the announcement, state agencies began the statutorily required process of reviewing the BP-Hilcopy transaction, drawing significant interest from members of the public and the Legislature.

Unlike the BP-ARCO merger that closed in 2000 and was subject to oversight from the Securities and Exchange Commission, this transaction has been reviewed by the Federal Trade Commission and no antitrust or anticompetitive issues were identified according to a memorandum from the Governor dated December 17, 2019. As a result, the transaction review and approval is unequivocaly the State's responsibility.

Understanding the review is underway, effective immediately Governor Dunleavy established the Governor's Oversight Committee on the BP-Hilcorp Transaction to ensure the transaction receives a fair and thorough vetting, and to inform the governor's office and the public of the transaction proceedings.

Commissioners or their designees from seven state departments and a senior level member of the Governor’s staff will serve on the Commission:

• Commissioner or designee of the Department of Natural Resources (Chair)
• Commissioner or designee of the Department of Environmental Conservation
• Attorney General or designee of the Department of Law
• Commissioner or designee of the Department of Fish & Game
• Commissioner or designee of the Department of Labor and Workforce Development
• Commissioner or designee of the Department of Commerce, Community, and Economic Development
• Commissioner or designee of the Department of Revenue
• Governor’s Office Director of Policy & Communications

The Committee will advise the Governor on whether regulatory and statutory requirements are being satisfied, inform him on comments from the public and the Alaska Legislature, any potential impacts on the state’s workforce and brief the Governor on all proceedings related to the transfer in the state’s quasi-judicial agencies.

More information on the members of the Committee and its schedule will be announced in the near future.

Earlier last week, Governor Dunleavy said in a prepared statement, "We are glad to hear that BP and Hilcorp Alaska are committed to finding employment opportunities for those impacted by the transaction. Since the announcement in August, the majority of BP’s employees have accepted positions with Hilcorp Alaska – this is an assuring outlook at their commitment to a strong Alaskan workforce. I am optimistic that any Alaskan looking for employment in our growing oil and gas sector will find the right opportunity with the continued growth and investment on the North Slope." He said,  “I will continue to monitor and evaluate this transaction and work with both BP and Hilcorp to ensure Alaskans are well advantaged as this deal progresses.”

The Alaska Department of Labor and Workforce Development has several programs in place to continue efforts with BP to find proper placement for Alaskan’s affected by the transition.

“Representatives from the Department of Labor and Workforce Development are working closely with BP to ensure that the affected employees have the tools and information needed to transition to reemployment with as little disruption as possible. Our rapid response services include opportunities for retraining, unemployment insurance services, as well as connecting prospective employees with the employer community,” said Dr. Tamika L. Ledbetter, Department of Labor and Workforce Development Commissioner.

On the Web:

Duties and Responsibilities of the Committee are included in the Governor’s memo dated 12/27/19 - Download PDF

Source of News:

Office of Governor Michael Dunleavy
www.gov.alaska.gov

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