REMINDER: Our user survey closes on Friday, please submit your responses here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

EXCLUSIVE-Exxon eyes UK North Sea exit after 50-year presence -sources

Tue, 13th Aug 2019 13:35

* U.S. firm considering selling all or part of its UK assets

* British North Sea portfolio valued at up to $2bln

* Exxon focusing on U.S. shale and new projects(Adds background, graphic)

By Ron Bousso

LONDON, Aug 13 (Reuters) - Exxon Mobil isconsidering an exit from the British North Sea after more than50 years in the oil and gas basin as it focuses on U.S. shaleproduction and new projects.

The world's largest publicly traded energy company, Exxonhas held talks with a number of North Sea operators in recentweeks to gauge interest in some or all of its assets, whichcould fetch up to $2 billion, according to three industrysources with knowledge of the matter.

Exxon declined to comment.

Leaving the British North Sea would mark a major retreatfrom Europe for Irving, Texas headquartered Exxon, which hasalready put its Norwegian offshore assets on the block.

It would follow similar moves by U.S. rivals Chevron andConocoPhillips which earlier this year sold the bulk of theirNorth Sea operations.

Most of Exxon's operations are managed through a 50-50 jointventure with Royal Dutch Shell, known as EssoExploration and Production UK, and include interests in nearly40 oil and gas fields.

Shell declined to comment.

Exxon produces around 80,000 barrels of oil and 441 millioncubic feet of gas a day in the British North Sea, according toits website.

Potential buyers could include large private equity-backedNorth Sea producers such as Chrysaor or Neptune which haveacquired portfolios from veteran producers in recent years.

Assigning a value to oil and gas assets in the North Sea iscomplicated because many fields and infrastructure are nearingthe end of their lives and require dismantling, ordecommissioning, an expensive process which can offset years ofproduction revenue.

The North Sea has seen a revival in production in recentyears, however, due to new fields coming on line and improvedperformance by operators following the 2014 oil price collapse.

Still, the basin's production is expected to decline overthe next decade, according to the U.K. Oil and Gas Authority.

Should the direct discussions with potential buyers notyield a result, Exxon will consider appointing an external bankto run a formal sale process, two of the sources added.

It was unclear if a sale of asset would require breaking upthe Esso joint venture.

Esso has been producing gas since 1968 and oil since 1976including from the Brent field, which is eponymous with theglobal crude benchmark and is now being decommissioned.

Exxon's operational focal point in recent years has turnedto the United States, where it is rapidly ramping up oilproduction in the Permian Basin, as well as in Guyana, where itis developing huge, untapped fields.

(Additional reporting by Gary McWilliams in Houston; editing byJason Neely)

More News
30 Dec 2021 09:28

UPDATE 2-FTSE 100 edges down as COVID fears dull festive cheer

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Industrial stocks eye best performance in 23 years* Travel and leisure hit by Omicron fears* Ashtead the top YTD performer on FTSE 100* UK ...

Read more
30 Dec 2021 05:33

UPDATE 5-Oil prices rise slightly ahead of OPEC+ meeting next week

* U.S. crude, fuel stocks fell last week; output rises -EIA* Saudi king says OPEC+ pact 'essential' for oil market stability (New throughout, updates prices, market activity and comments to settlement, adds OPEC+ meeting details and PSM details)By...

Read more
28 Dec 2021 09:41

S.African court halts Shell's offshore seismic survey

CAPE TOWN, Dec 28 (Reuters) - A South African high court on Tuesday blocked Shell from conducting seismic testing offshore from South Africa's pristine Wild Coast, in the latest ruling in a case seeking to prevent the oil major from exploring for...

Read more
27 Dec 2021 14:01

Mexican president says Pemex to close Deer Park deal in January

MEXICO CITY, Dec 27 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) will complete its purchase of a controlling interest in a Texas oil refinery in January, Mexican President Andres Manuel Lopez Obrador said on Monday.Mexico's go...

Read more
24 Dec 2021 10:03

UPDATE 1-Russia says Europe missing out on gas with Nord Stream 2 delay

(Recasts, adds quote, background)MOSCOW, Dec 24 (Reuters) - Europe, struggling with soaring gas prices, is missing out on additional Russian supplies amid delays to the Nord Stream 2 pipeline, a top Russian official signalled on Friday.Deputy Prim...

Read more
24 Dec 2021 08:26

Russia's Novak: Nord Stream 2 hindered by politics

MOSCOW, Dec 24 (Reuters) - The launch of the Nord Stream 2 natural gas pipeline is being hindered by politics, but Russia still hopes its certification will be completed by mid-2022, Russian Deputy Prime Minister Alexander Novak said on Friday.The...

Read more
24 Dec 2021 08:19

Russia says Nord Stream 2 a bargaining chip for U.S., EU, Interfax reports

MOSCOW, Dec 24 (Reuters) - The Nord Stream 2 gas pipeline project linking Russia with Europe has become a bargaining chip in a game played by the United States and the European Union, Russian Deputy Foreign Minister Sergei Ryabkov said on Friday, ...

Read more
23 Dec 2021 14:14

Third Point's Loeb slams activists after UK fund chairman quits

LONDON, Dec 23 (Reuters) - Hedge fund Third Point's boss Dan Loeb on Thursday blamed the departure of the chairman of the firm's London-listed fund on "inexperienced" and "juvenile antics" of activist investors.Third Point Investors Limited (TPIL)...

Read more
22 Dec 2021 20:56

Shell declares force majeure on Nigerian Forcados crude

LAGOS, Dec 22 (Reuters) - Royal Dutch Shell's Nigerian subsidiary SPDC has declared force majeure on exports of Nigerian Forcados crude oil after the obstruction of a tanker path by a malfunctioning barge, the company said in a statement.The actio...

Read more
22 Dec 2021 13:49

UPDATE 3-Mexico says U.S. approves Deer Park refinery deal, sees completion early 2022

(Adds details)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery in a transaction that should conclude early next year,...

Read more
22 Dec 2021 13:49

UPDATE 2-Mexico says U.S. government approves Deer Park refinery deal

(Adds context, comment from Pemex CEO)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manu...

Read more
22 Dec 2021 13:49

UPDATE 1-Mexico says U.S. government approves Deer Park refinery deal

(Adds details)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manuel Lopez Obrador said on...

Read more
22 Dec 2021 13:15

Mexico says U.S. government approves Deer Park refinery deal

MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manuel Lopez Obrador said on Wednesday.Lo...

Read more
21 Dec 2021 19:06

UPDATE 1-Texas lawsuit by laundromat owners seeks to block Shell refinery sale to Pemex

(Adds U.S. Treasury, CFIUS decline to comment)By Stefanie Eschenbacher and Gary McWilliamsMEXICO CITY/HOUSTON, Dec 21 (Reuters) - A pair of New York businessmen filed a lawsuit in a U.S. court seeking to block Mexico's state oil company Petroleos M...

Read more
21 Dec 2021 18:32

Texas lawsuit by laundromat owners seeks to block Shell refinery sale to Pemex

By Stefanie EschenbacherMEXICO CITY/HOUSTON, Dec 21 (Reuters) - A pair of New York businessmen filed a lawsuit in a U.S. court seeking to block Mexico's state oil company Petroleos Mexicanos (Pemex) from taking control of a Texas refinery, claimin...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.