Skip to main content

ExxonMobil sells North Sea UK assets to NEO Energy

Published by
Oilfield Technology,


ExxonMobil has signed an agreement with HitecVision, through its wholly owned portfolio company NEO Energy, for the sale of most of ExxonMobil’s non-operated upstream assets in the uk central and northern North Sea.

The sale price of more than US$1 billion is subject to closing adjustments, and has additional upside of approximately us$300 million in contingent payments based on potential for increase in commodity prices.

“We continue to high-grade our portfolio by divesting assets that are less strategic and focusing our investments on our advantaged projects that are among the best in the industry,” said Neil Chapman, senior vice president of ExxonMobil. “Our development plans that prioritise Guyana, the US Permian Basin, Brazil and LNG are focused on increasing earnings potential and generating strong cash flow to fund future capital investments, reduce debt and maintain a reliable dividend.”

The agreement includes ownership interests in 14 producing fields operated primarily by Shell, including Penguins, Starling, Fram, the Gannet Cluster and Shearwater; Elgin Franklin fields operated by Total; and interests in the associated infrastructure. ExxonMobil’s share of production from these fields was approximately 38 000 oil-equivalent barrels per day in 2019.

ExxonMobil will retain its non-operated share in upstream assets in the southern North Sea, and its share in the Shell Esso gas and liquids (SEGAL) infrastructure that supplies ethane to the company’s Fife ethylene plant.

The transaction is expected to close by the middle of 2021, subject to regulatory and third-party approvals.


Read the latest issue of Oilfield Technology in full for free: Oilfield Technology's November/December 2020 issue

The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.

Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/24022021/exxonmobil-sells-north-sea-uk-assets-to-neo-energy/

You might also like

 
 

Embed article link: (copy the HTML code below):