ConocoPhillips to sell UK oil and gas business for $2.68bn

The acquisition is said to make Chrysaor the largest net oil and gas producer in the UK

US energy giant ConocoPhillips is selling its oil and gas business in the UK to Chrysaor Holdings in a deal worth $2.68 billion (£2bn).

It includes two of ConocoPhillips subsidiaries, which indirectly hold the company’s production and exploration assets as well as associated decommissioning liabilities.

It will retain its London-based commercial trading business and its 40.25% interest in the Teesside oil terminal.

The assets being acquired – which is said to make Chrysaor the largest net oil and gas producer in the UK – produced around 72,000 barrels of oil equivalent per day (boepd) in 2018.

The news comes after it was revealed petrochemicals giant INEOS failed to secure a deal for the assets earlier this year.

Phil Kirk, Chief Executive of Chrysaor said: “This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production.

“In the Central North Sea, we will own a range of operated hub infrastructure providing access points in an area with the largest undeveloped contingent and prospective oil and gas resource base in the UK. In the West of Shetlands region, we have secured long life cashflows from two world-class field operated by BP. Chrysaor’s West of Shetlands position also provides exposure to a developing region with significant interest and momentum from major oil companies. We will seek to build on that through the acquisition of additional interests and acreage.”

The deal is expected to be completed in late 2019.

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