A BP spokesperson says the company has decided to sell its property on the corner of Benson Boulevard and Seward Highway and lease office space from the new owner.

“This is a real estate transaction under which we become tenants rather than owners of the office building,” the spokesperson said, explaining the company would remain in the building. “Doing so will reduce costs and free up capital, allowing BP to focus on its core business.”

The 2016 assessed value of the office building, which was completed in 1985, was $67,202,900, while the land was valued at $14,227,400, according to Municipality of Anchorage records.

BP does not plan on changing ownership of the BP Energy Center, which “provides meeting rooms to hundreds of Alaska community groups, free of charge,” according to the spokesperson.

The sale comes on the heels of mass layoffs announced in March, shortly after BP said it would pull its fleet from three of its Prudhoe Bay rigs. At the time, the company cited a low oil price environment as the reason for the cutbacks.

KTVA 11’s Emily Carlson contributed to this report.