ConocoPhillips closes sale of UK business to Chrysaor

  • Business & Finance

ConocoPhillips has completed its previously announced transaction to sell two ConocoPhillips United Kingdom subsidiaries to Chrysaor for $2.675 billion, plus interest and customary adjustments.

Britannia facilities; Source: ConocoPhillips

The transaction was announced last April and the completion was announced on Monday, September 30.

Together, the subsidiaries indirectly held the company’s exploration and production assets in the U.K., as well as approximately $1.8 billion in asset retirement obligations. Proceeds will be used for general corporate purposes.

“We are pleased that Chrysaor recognizes the value of our U.K. exploration and production assets, and will continue their development in the future,” said Ryan Lance, chairman and chief executive officer.

“Our business legacy in the U.K. reflects a 50-year history of achievement and operational excellence. Our workforce there should be proud of their accomplishments, and we look forward to maintaining our commercial trading business in London and continuing as operator of the Teesside oil terminal.”

In the first six months of 2019, production associated with the U.K. assets sold was 72 thousand barrels of oil equivalent per day (MBOED).

As a result of this acquisition, Chrysaor added three material assets to its portfolio. These include two new operated hubs in the UK Central North Sea ‐ Britannia and J‐Block.

The third material acquired asset is an interest in the world class Clair field area located in the highly prospective West of Shetlands region. This interest and the Clair field’s prospects for future additional development complement Chrysaor’s existing West of Shetlands position in the Schiehallion field.

In a separate statement on Monday, Chrysaor said that the completion of the transaction follows receipt of all necessary regulatory approvals.

Phil Kirk, Chief Executive, Chrysaor, said: “We are now one of the largest UK producers with a portfolio of high-quality, long-life assets complemented by a professional and expert staff. As we enter a new chapter for Chrysaor we look forward to welcoming our new colleagues and the safe integration of the two businesses. We have identified a number of exciting growth opportunities in our expanded portfolio and across the CNS.”

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