ConocoPhillips to Exit UK E&P Business in $2.7-Billion Sale

ConocoPhillips has concluded to sell a dual UK upstream subsidiaries to privately-held, London-based Chrysaor Holdings for $2.675 billion, withdrawal a segment where it has confirmed scrutiny and prolongation for some-more than 50 years as it repurposes a portfolio.

Chrysaor is gaining a business that constructed 72,000 BOE/D in 2018 and had yearend valid oil and gas pot of 99 million BOE. The business binds some-more than 280 million BOE of valid and illusive pot with “a serve poignant fortuitous apparatus base,” Chrysaor said.

The deal, approaching to tighten in this year’s second half, will urge a 12-year-old Chrysaor’s pro forma 2019 prolongation to 185,000 BOE/D, creation a association one of a largest producers in a UK North Sea. Including a acquisition, Chrysaor’s pro forma valid and illusive pot as of 1 Jan sum some-more than 600 million BOE.

Among a resources to be acquired in a deal, Chrysaor will supplement dual new operated hubs, Britannia and J?Block, in a executive North Sea as good as a Clair margin area in a “highly prospective” West of Shetlands region, a association said.

Britannia and J?Block have “a high?quality oil and gas haven bottom and entrance to poignant fortuitous apparatus potential,” that offers near-field opportunities for prolongation expansion and haven replacement, pronounced Chrysaor. The company’s Clair margin seductiveness and a area’s destiny expansion prospects element Chrysaor’s stream West of Shetlands position in a Schiehallion field, where it acquired a 10% seductiveness in its $3-billion squeeze of North Sea resources from Shell in 2017.

Chrysaor will assume shortcoming for an ongoing decommissioning module on ConocoPhillips UK’s end?of?life resources in a southern North Sea. Chrysaor skeleton to have materially finished a module by 2022.

“This poignant merger reflects a stability faith that a UK North Sea has element destiny intensity for oil and gas production,” pronounced Phil Kirk, Chrysaor arch executive officer. “These resources element a existent operations and, with handling costs during reduction than $15/bbl opposite a lengthened group, a portfolio delivers high margins and poignant certain money flow.”

Chrysaor pronounced it will find to build on a West of Shetlands position by a merger of additional interests and acreage.

“We are vehement to play a purpose in a healthy expansion of a North Sea and to capacitate a protected send of resources from vital oil companies such as ConocoPhillips to new, well?funded, privately?owned operators,” pronounced Linda Z. Cook, Chrysaor chairman. “This routine formula in a good understanding for both a seller and a buyer, with new item owners such as Chrysaor bringing a plan and collateral compulsory for reinvestment and growth.”

Fellow privately-owned, London-headquartered Ineos had been in talks with ConocoPhillips to acquire a assets. 

Chrysaor is corroborated by Harbour Energy, an appetite investment association managed by EIG Global Energy Partners. Chrysaor will account a squeeze with money and an upsized $3-billion reserve-based lending debt facility.

ConocoPhillips will keep a London-based blurb trade business and a 40.25% seductiveness in and operatorship of a Teesside oil terminal.

“This showing is partial of a ongoing bid to file a portfolio and concentration a investments opposite destiny low cost of supply opportunities,” pronounced Ryan Lance, ConocoPhillips authority and arch executive officer.  

The Houston eccentric final year sole a 16.5% seductiveness in a Clair margin to user BP, then-retaining a 7.5% seductiveness while shopping BP’s seductiveness in a in a Greater Kuparuk Area in Alaska. The pierce was intended core adult ConocoPhillips’ bequest item bottom in Alaska, an area of augmenting focus for a company.

ConocoPhillips also this week sealed on a sale of 30% seductiveness in a Greater Sunrise fields to a supervision of Timor-Leste for $350 million. The association generated $1.1 billion from item sales in 2018.

 

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