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Exxon Mobil ‘mulling sale of North Sea assets’
Posted on Wednesday, 14 August 2019 14:36
US oil and gas giant Exxon Mobil is considering divesting its operations in the British North Sea, according to Reuters. Three industry sources with knowledge of the situation told the news provider that discussions have already taken place with a number of fellow North Sea operators over the last few weeks in a bid to discern the level of interest in the unit. Reuters named the likes of Chrysaor and Neptune as parties which could potentially be intrigued by the possibility of acquiring the division. According to the people, if a deal goes ahead, it could be worth as much as USD 2.00 billion, while two of the sources said if no deal is reached, Exxon could decide to hire a bank to run a formal process. None of the parties involved have commented on the report at this time. Reuters noted that divesting the North Sea assets will enable Exxon to concentrate on its US operations, specifically shale production and new projects. This is not the first time Exxon has been linked with a sale in recent months; in June, a spokeswoman was cited by Reuters as saying the firm was considering offloading its holdings in oil and gas fields off the coast of Norway. Last week, banking sources told Reuters that Jefferies Group has been appointed to advise on the process. Exxon first began exploring the North Sea in 1964 and invested GBP 254.00 million in the region during 2015 alone. Its assets there comprise almost 40 producing oil and gas fields and, according to its website, it is responsible for around 5.0 per cent of UK oil and gas production, supplying the country and international markets with 80,000 barrels of oil and 441.00 million cubic feet of gas per day, on average. © Zephus Ltd