• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour OPEC will consider all options. What options do they have ?
  • 2 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 3 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 hour A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 5 hours What to tell my students
  • 3 hours China Threatens to Withhold Rare Earth Metals
  • 9 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 5 hours With Global Warming Greenland is Prime Real Estate
  • 18 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 17 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 14 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 19 hours Flaring is at Record Highs in Texas

ExxonMobil Looks To Exit UK North Sea Oil & Gas

ExxonMobil

ExxonMobil has recently discussed with operators selling part or all of its assets in the UK North Sea in a move that could raise up to US$2 billion for Exxon and mark another major U.S. exit from the area, Reuters reported on Tuesday, quoting three industry sources familiar with the matter.

Exxon has been a major investor in the UK North Sea since 1964, when the first exploration drilling in the area began. The U.S. major holds interests in 40 producing oil and gas fields and produces around five percent of UK oil and gas production, with an average 80,000 barrels of oil and 441 million cubic feet of gas a day. Exxon’s investment in the North Sea is managed through a 50/50 joint operation with Shell.

If Exxon sells some or part of its assets in the UK North Sea, it will be yet another major U.S. oil and gas firm to divest interests in this mature area to focus on their current key growth areas, which for Exxon right now are the Permian in Texas and conventional oil production offshore Guyana.

While European supermajors Shell, BP, and Total continue to view the North Sea as one of their core assets, U.S. majors have been selling North Sea stakes as many of them are now focused on U.S. shale.

Marathon Oil said in February that it would be exiting the UK North Sea as it continues to focus on high-return U.S. shale oil operations.

In April, ConocoPhillips sold its UK oil and gas business to Chrysaor Holdings for US$2.675 billion in a deal which Wood Mackenzie described as “another story of the changing corporate landscape in the North Sea – for the first time, a non major is the number one producer in the UK.”

Related: Permian Slowdown Could Start In 2020

Chevron also sold in May its North Sea assets—except for a non-operated stake in the Clair field—for US$2 billion to Ithaca Energy.

A sale of assets in the UK would add to Exxon’s plan to sell its assets offshore Norway in what could be a major withdrawal from European offshore production.

In Norway, ExxonMobil sold in 2017 its ownership interests in its operated fields Balder, Jotun Ringhorne, and Ringhorne East to Point Resources, but continued to hold ownership interests in fields that it doesn’t operate.

In June, an Exxon spokesman told a Norwegian newspaper that the company is weighing the sale of its assets in Norway. Rystad Energy has estimated that Exxon’s portfolio of Norwegian upstream assets has a value of US$3.1 billion. As of 1 January 2019, Exxon controlled 530 million barrels of oil equivalent on the Norwegian Continental Shelf, the most valuable asset being a stake in the Snorre field, worth nearly US$700 million, according to Rystad.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play