Chevron to sell UK North Sea assets after 55 years: Reuters
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The news: Chevron plans to sell the remainder of its UK North Sea oil and gas assets, marking the energy giant’s departure from the basin after operating there for over 55 years.
The numbers: Chevron’s assets in the region include a 19.4% stake in BP-operated Clair oilfield, which produces 120,000 barrels per day, making it the largest in the British North Sea.
Chevron also plans to sell its marginal interests in the Sullom Voe oil terminal, as well as its stakes in the Ninian and SIRGE pipeline systems which are both linked to the hub.
The context: According to sources cited by Reuters, the sale could raise up to USD1 billion ($1.5 billion) excluding tax benefits. However, the oil major has stressed that its decision to leave the North Sea was not related to the UK tax regime, where energy companies pay 75% of tax on profits, nor to the opposition Labour party’s plans to increase the fuel levy. The Labour party is widely expected to win the UK general election later this year.
The decision to sell comes as Chevron prepares its USD53 billion acquisition of Hess, which it had previously disclosed would include selling off USD10-$15 billion of its global assets.
The process is expected to be formally launched in June, according to sources, and in a statement a Chevron spokesperson said: "The process is expected to take multiple months and may or may not result in a sale."
The source: Reuters
