Hillcorp is an independent, private natural gas exploration company with its headquarters in Houston, Texas. It was founded in 1989 by Jeffery Hildebrand. The company employs over 1825 staff across the USA.
The company has just purchased all of BP’s assets in Alaska for $5.6 billion. Hilcorp has increased its assets in Alaska with the addition of assets in the Prudhoe Bay field, Point Thompson field, and the trans-Alaska pipeline. This transaction should be completed by 2020.
There is some concern that fossil fuel production in Alaska is drawing slowly to a close and that this is what prompted BP to sell its assets to Hilcorp. However, Hilcorp has a reputation for taking on projects that other players have seen as finished and then bringing them back to life.
John Walker, the former chief oil and gas advisor to the governor, said that Hilcorp has had phenomenal growth in Alaska with the company doubling and then doubling again. The company first established a foothold in Alaska just seven years ago and is now becoming a major player in the state, becoming the second-largest oil producer once the BP sale is fully completed.
Hilcorp’s environmental and safety record
There is no doubt that Hilcorp Alaska has had some issues with safety in the last few years and has been attacked for it. In 2017, Tate regulators fined Hilcorp following the death of three employees during a clean-up operation. The same year a pipeline in Cook inlet was leaking natural gas for a number of weeks. Local environmentalists say that the Hilcorp business model is to find new profit in older unprofitable fields, and it can only do that by cutting corners.
In response, Justin Furnace, a spokesman for Hilcorp, stated that if the company could not safely carry out a project, then it would not undertake it. He went on to say that the company works in close cooperation with local, state, and federal agencies to enhance public safety, upgrade emergency preparations, and protect the environment.