ExxonMobil to Revive UK North Sea Sale: Press
ExxonMobil is resuming efforts to sell its UK North Sea operations, after low oil prices and the coronavirus (Covid-19) crisis delayed the proceedings by several months, Reuters reported on June 11 citing sources.
The US major has held talks with a number of potential buyers in recent weeks, but is unlikely to push ahead with a formal sales process if it does not feel there is sufficient interest, Reuters said.
ExxonMobil has interests in almost 40 oil and gas fields on the UK shelf through its Esso Exploration & Production UK subsidiary. They produce around 80,000 barrels/day of oil and 441mn ft3/day of gas, according to the company's website. Many of the assets are reaching the end of their lives, meaning that decommissioning costs will be a key point in negotiations.
ExxonMobil announced plans in last November to shed $15bn of assets by 2021. As part of the sell-off, the company is expected to exit the European upstream sector altogether. It sold its Norwegian business to Eni-owned Var Energi for $4.5bn late last year, and is seeking buyers for its stake in an offshore Romanian project as well. According to Reuters, ExxonMobil had hoped to fetch more than $2bn from the UK sale, but is now likely to raise only $1.0-1.5bn because of market conditions.