• 3 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 1 hour U.S. Withdraws From U.N. Human Rights Council
  • 3 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 3 hours Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 4 hours WE Solutions plans to print cars
  • 5 hours Gazprom Exports to EU Hit Record
  • 54 mins Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 9 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 10 hours EVs Could Help Coal Demand
  • 16 mins Saudi Arabia turns to solar
  • 19 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 19 hours Oil prices going down
  • 18 hours Australia mulls LNG import
  • 12 hours Lloyd's of London excludes coal
  • 16 hours What If Canada Had Wind and Not Oilsands?
  • 18 hours Oil and Trade War
Shale Shifts Attention To This ‘Forgotten’ Oil Play

Shale Shifts Attention To This ‘Forgotten’ Oil Play

As the Permian becomes overcrowded,…

Can Oil Pull Greece Out Of Poverty?

Can Oil Pull Greece Out Of Poverty?

Greece’s withering economy could use…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

UK’s Largest Independent Oil Producer To Begin North Sea Drilling In 2018

North Sea

Chrysaor will begin drilling in the North Sea in 2018 following its $3.8 billion purchase from Royal Dutch Shell, the company’s chairman Linda Cook said Wednesday, according to Reuters.

The deal made Chrysaor the largest independent driller in the United Kingdom. The company is backed by Harbour Energy, which is owned by EIG Global Energy Partners. Cook said Chrysaor is also interested in new acquisitions in the North Sea.

“We’re already looking at further acquisitions we can make in the North Sea to broaden and deepen the assets that we have acquired ... We are eager to broaden our geographic scope in Chrysaor to include Norway and Denmark,” she said.

CEO Phil Kirk was keen on an initial public offering within the next year, after funding several acquisitions through internal cash generation coming from existing production activities.

“If we are able to meet our growth aspirations and shape our portfolio in a way that will be interesting then I think absolutely we could have a very viable IPO candidate,” she said.

A recent report from Wood Mackenzie says that the North Sea has become the second-hottest spot for oil investments, after U.S. shale. That’s largely due to private equity’s renewed appetite for oil and gas investments: according to the consultancy, there’s a total of $15 billion in capital waiting to be spent on North Sea acquisitions.

Related: The Oil And Gas Industry Is Hiring Again

In the first half of 2017, deals worth almost $6 billion were sealed in the North Sea oil industry, the Oil & Gas Authority said in its Economic Report 2017, noting that these and future acquisitions serve as a sign of the industry’s gradual improvement and are a much-needed source of new investment that will ensure future production in the region.

Production costs in the North Sea have been high, but the oil price crash has motivated companies to find cheaper ways to extract fuel from the aging fuel source. BP, for instance, has cut its production costs from $30 a barrel to about $15, and plans to further reduce this to less than $12 by 2020. Shell and other producers have managed to cut costs by as much as 60 percent.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News