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Harbour Energy to lead acquisition of Shell UK North Sea Assets

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Oilfield Technology,

Harbour Energy Ltd has announced it has agreed to lead the acquisition by Chrysaor Holdings Ltd of a well-diversified portfolio of oil and natural gas assets from Shell UK Ltd and its affiliates to create the UK’s leading independent oil and gas company focused on the North Sea.

The asset package has strong cash flows at current commodity prices and includes Shell interests in ten operated and non-operated fields areas, in addition to associated infrastructure and midstream assets. Collectively, the assets produced 115 000 boe/d in 2016, and are expected to comprise approximately 350 million boe/d of oil equivalent proven and probable (2P) reserves as at the transaction effective date of 1 July 2016. Harbour Energy, together with funds managed by EIG, will provide Chrysaor with up to US$1 billion to support the acquisition and provide future growth capital. The remainder of the capital required for the acquisition will be provided by lenders.

Linda Z. Cook, the Chief Executive Officer of Harbour Energy, said: “Our investment in Chrysaor offers us a compelling opportunity to execute on our core strategy of investing in energy companies that we believe include high quality assets, strong management teams and significant long-term growth potential. With Chrysaor, Harbour Energy now has an immediately scalable, robust platform from which to invest in additional upstream energy assets and participate in further consolidation in this important region.”

R. Blair Thomas, the Chief Executive Officer of EIG, said: “This transaction is central to the strategy behind our creation of Harbour Energy— putting permanent capital to work to take advantage of long-term growth opportunities and applying our deep industry and operating expertise in pursuit of attractive assets made available by portfolio re-balancing occurring across the global oil and gas industry. The markets have dictated patience over the last few years, but we believe now is the time to lean-in and take advantage of the exciting opportunities we see developing in the energy sector.”

Both Cook and Thomas will serve as Directors on the board of Chrysaor, with Cook assuming the role of Chairman.

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