The sale of two United Kingdom subsidiaries of ConocoPhillips for $2.675 billion was announced Thursday.
The buyer is Chrysaor E and P Limited, a firm that describes itself as “UK’s leading North Sea independent oil and gas company.” Chrysaor’s website says the firm has interests in 5 of the 10 largest production hubs in the UK North Sea. It operates 8 fields with 21 wells and boasts of partnering with some of the world’s largest companies in 17 non-operated fields with 147 wells.
The two subsidiaries indirectly hold ConocoPhillips’ exploration and production assets in the United Kingdom. ConocoPhillips stated that it will keep its London-based commercial trading business and its 40.25 percent interest in and operatorship of the Teesside oil terminal.
“We are extremely proud of the legacy we’ve built in the U.K. over the last 50 years and are pleased that Chrysaor recognizes the value of this business,” said Ryan Lance, chairman and chief executive officer. “This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”
Full-year 2018 production and year-end 2018 proved reserves associated with the U.K. assets being sold were approximately 72 thousand barrels of oil equivalent per day (MBOED) and approximately 99 million barrels of oil equivalent (BOE), respectively.
The effective date for the transaction will be Jan. 1, 2018. The transaction is subject to regulatory approval and other specific conditions precedent. The sale is expected to be completed in the second half of 2019.
