Oil Giants Conclude 60-Year Venture in the British Oil Basin
Shell and ExxonMobil are close to finalizing a $500 million (£390 million) deal to sell two gas sites in the North Sea, as they continue their retreat from the UK’s oil basin.
The companies are finalizing the sale of the Clipper and Leman Alpha installations in the southern North Sea to UK-based start-up Viaro Energy.
Owned by Shell and ExxonMobil through a joint venture since the mid-1960s, Clipper and Leman Alpha are major gas sites. The sale comes as both companies shift focus away from the North Sea.
The deal is nearly complete but could still fall through, according to Reuters.
In 2021, ExxonMobil sold most of its North Sea assets to private equity-backed Neo Energy but kept a 50% stake in the Clipper and Leman fields. A sale would mark ExxonMobil’s exit from the North Sea after nearly 60 years.
This move follows US oil major Chevron’s announcement of its own exit from the North Sea after 55 years. Chevron, the world’s third-largest oil company, plans to sell its investments in a series of North Sea assets, expected to fetch between $800 million and $1 billion, following a review of its global operations.
The Telegraph reported last week that the North Sea oil industry faces an uncertain future due to the upcoming General Election, with Labour planning to increase a windfall levy on oil and gas company profits, initially introduced by the Conservatives in 2022.
Production in the North Sea has been steadily declining for the past two decades as major oil companies opt to invest in more lucrative assets worldwide.
This shift has created opportunities for smaller players like Viaro Energy to enter the market.
Founded in London in 2012 by CEO Francesco Mazzagatti, Viaro Energy was established with a primary focus on investing in the North Sea.
The company’s first significant move was acquiring RockRose Energy in 2020, securing its presence in the region.
Additionally, Aberdeen-based oil and gas consultancy Wood Group announced on Tuesday that it had received a new takeover bid from Dubai-based rival Sidara.
The 230p offer marks Sidara’s fourth and final proposal after the previous three were rejected by Wood’s board for undervaluing the company. Wood Group stated that it would review the new offer.
