|
The disposal of Conoco's North Sea assets after more than 50
years in the British offshore basin could fetch as much as $2
billion, but it was unclear how much of the portfolio would be
put up for sale, the three sources said.
Conoco declined to comment.
The company has yet to launch a formal process or appoint a bank
but executives from Conoco have spoken in recent weeks to a
number of North Sea operators and bankers to "gauge the appetite
for the sale", one of the sources said.
The assets include a 24 percent stake in the west Shetlands
region's Clair field, which its operator BP says is the largest
undeveloped oil and gas resource in the UK North Sea. The Clair
Ridge project is expected to begin production this year,
according to BP.
Other fields include holdings in the Britannia and J-Block hubs.
Conoco's production in the UK North Sea reached 75,000 barrels
of oil equivalent per day in 2017, its annual report said.
The company tried to sell some of its North Sea assets in 2014
but the process failed, the sources added.
Conoco is the latest major oil company seeking to exit the North
Sea as production in the aging basin declines, other areas
become more competitive and costs for dismantling aging
infrastructure weigh.
Conoco earlier this year said it would cut some 450 jobs in
Britain, more than a quarter of its UK workforce.
(Additional reporting by Gary Williams and Ernest Scheyder in
Houston; Editing by Dale Hudson)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
