Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

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

June 3 (Bloomberg) -- BP Plc 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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.