Wednesday 18 September 2019

Chrysaor snaps up North Sea oil assets in £2bn deal

The assets produced 72 thousand barrels of oil per day in 2018.

ConocoPhillips is to sell its North Sea assets to Chrysaor (PA)
ConocoPhillips is to sell its North Sea assets to Chrysaor (PA)

By Ravender Sembhy, Press Association City Editor

Energy firm ConocoPhillips is to sell its exploration and production assets in the North Sea to Chrysaor for 2.68 billion US dollars (£2 billion).

Last year, the assets produced 72 thousand barrels of oil per day and contain 99 million barrels of proven reserves.

“We are extremely proud of the legacy we’ve built in the UK over the last 50 years and are pleased that Chrysaor recognises the value of this business,” said Ryan Lance, ConocoPhillips chairman and chief executive.

“This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”

Proceeds from this transaction will be used for general corporate purposes, and ConocoPhillips will retain its London-based commercial trading business and its 40.25% interest in the Teesside oil terminal.

The latest deal comes after private equity backed Chrysaor snapped up a package of North Sea assets from Shell in 2017 for up to 3.8 billion US dollars (£3 billion).

Last year, ConocoPhillips confirmed it will axe around 450 jobs across its UK operations between October 2018 and April 2020.

Chrysaor said on Thursday that the deal has the “potential for further cost efficiencies through near field tie-backs and third party business”.

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