BP Plans $1 Billion Investment in Alaska as State Lowers Taxes

BP Plc (BP/) will add $1 billion to Alaska investment after the state changed its oil tax policy in April.

Europe’s second-biggest oil company will increase drilling, upgrade activities and add 200 jobs in the state, BP said in a statement today. The London-based company will also start evaluating an additional $3 billion in new development projects with companies.

Alaska Governor Sean Parnell and the state legislature lowered effective oil tax rates with a bill passed April 16. The state now taxes profits at a flat 35 percent and eliminated a system in which taxes rose as high as 75 percent when oil prices went up.

“With this new tax law, the Alaska legislature and Governor Parnell have taken an important step toward improving Alaska’s long-term economic future,” said Janet Weiss, head of BP in Alaska. “Our announcement today should make abundantly clear that BP is committed to being a part of that future.”

BP-operated fields account for two-thirds of Alaska’s production and include Prudhoe Bay, the largest oilfield in North America, BP said. The company employs 2,300 people in the state.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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