ConocoPhillips moves to sell North Sea oilfields: sources
May 15, 2018/ 13:27
New York. U.S. oil major ConocoPhillips is preparing to sell its North Sea assets, as the company focuses on shale plays in the U.S., industry and banking sources.
The disposal of ConocoPhillips’ North Sea assets after more than five decades in the British offshore basin could sell for as much as $2 billion, but it was unclear how much of the portfolio would be put up for sale.
ConocoPhillips declined to comment, Kallanish Energy finds.
The company has yet to launch a formal process or appoint a bank, but executives with ConocoPhillips have spoken in recent weeks to a number of North Sea operators and bankers to “gauge the appetite for the sale,” one of the sources said.
The assets include a 24% stake in the west Shetlands region’s Clair field, which its operator, BP, says is the largest undeveloped oil and gas resource in the UK North Sea. The Clair Ridge project is expected to begin production this year, according to BP.
Other fields include holdings in the Britannia and J-Block hubs.
ConocoPhillips’ production in the UK North Sea reached 75,000 barrels of oil-equivalent per day (BOE/d) in 2017, according to its annual report.
The company tried to sell some of its North Sea assets in 2014, but the process failed, the sources told Reuters.