CONOCO SELLS BRITAIN $2.67 BLN
Britain's oil gas assets
- Apr 22, 2019 6:38 pm GMT
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Chrysaor has agreed to ConocoPhillips' UK upstream business for $2.67 billion in a deal set to make the private equity-backed upstream player one of the biggest oil and gas producers in the UK North Sea.
ConocoPhillips's gas-focused North Sea assets pumped 72,000 b/d of oil equivalent last year, and the acquisition will help boost Chrysaor's total production this year to over 185,000 boe/d, Chrysaor said in a statement.
ConocoPhillips, which in January dropped exclusive talks on the sale of its UK business to privately owned Ineos, operates two production hubs in the UK Central North Sea -- Britannia and J-Block. The gas-focused North Sea assets also include a stake in the West of Shetland Clair field.
Chrysaor, which has Washington DC-based EIG as its main shareholder, acquired one of the biggest legacy portfolios in the UK North Sea in 2017 when it bought a string of assets from Shell that included stakes in the Buzzard, Elgin-Franklin and Schiehallion hubs, and the Armada area, where it is the operator and has expansion plans. Since the $3-billion purchase of the Shell assets, Chrysaor has been looking to grow into a leading independent exploration and production companies in Europe.
"This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production," CEO Phil Kirk said in a statement.
ConocoPhillips' UK assets contain over 280 million boe in proved and probable reserves, and the deal will take Chrysaor's pro forma 2P reserves total to over 600 million boe.