Oil giant BP to pull out of Alaska as sells business for $5bn

BP will no longer have any operations in Alaska after it agreed to sell its entire remaining business there to a private oil and gas firm.

Hilcorp will pay $5.6bn (£4.5bn) to buy all of BP's interests in the US state.

The firm has faced pressure from environmental groups to stop drilling in the area, but BP said its decision was not connected to this.

"We have other opportunities that are more closely aligned with our long-term strategy," BP's chief executive said.

BP said the deal is part of its plans to raise $10bn over the next two years through asset sales to further strengthen its balance sheet.

The extreme cold and remoteness of some of the drilling regions of Alaska makes it expensive for firms to operate there.

BP's chief executive Bob Dudley said Hilcorp had the ability to "maximise its [the business's] value for the State of Alaska."

Mr Dudley said the funds from the sale would enable BP to "pursue new advantaged opportunities."