ConocoPhillips agreed to sell two of its U.K. subsidiaries to Chrysaor E&P Limited for over $2.6 billion, the company announced on Thursday.
The subsidiaries indirectly hold the company’s exploration and production assets in the U.K. as well as associated decommissioning liabilities.
The acquisition will add ConocoPhillips’ offshore production hubs, J Area, Britannia and assets in the East Irish Sea, to Chrysaor’s operated portfolio. It will also enhance its non-operated stakes in the West of Shetland via acquisition of ConocoPhillips's stake in the Clair Field area.
Chrysaor said these new additions would make the company one of the largest independent oil and gas producers in the U.K. North Sea.
Last year, the company produced 72,000 barrels of oil equivalent (boe) of oil and gas from the U.K. assets per day and proved reserves totaled 99 million boe.
Ryan Lance, chairman and CEO of ConocoPhillips said the disposition is part of ongoing efforts to hone its portfolio and focus on other low cost investments.
The sale completion is expected in the second half of 2019.
ConocoPhillips will retain its London-based commercial trading business and operatorship of its Teesside oil terminal including its 40.25% share interest.
By Zeynep Beyza Kilic