ExxonMobil to Sell U.K. Upstream Central and Northern North Sea Assets
February 24 2021 - 7:00AM
Business Wire
- Sale price of more than $1 billion advances divestment plans,
further focusing portfolio on advantaged assets
- ExxonMobil retains extensive refining and fuels marketing,
lubricants, petrochemicals production and natural gas marketing
business in the U.K.
ExxonMobil has signed an agreement with HitecVision, through its
wholly owned portfolio company NEO Energy, for the sale of most of
ExxonMobil’s non-operated upstream assets in the United Kingdom
central and northern North Sea. The sale price of more than $1
billion is subject to closing adjustments, and has additional
upside of approximately $300 million in contingent payments based
on potential for increase in commodity prices.
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The sale includes ExxonMobil’s interests
in 14 producing fields in the UK North Sea, including Shearwater
(pictured). (Photo: Business Wire)
“We continue to high-grade our portfolio by divesting assets
that are less strategic and focusing our investments on our
advantaged projects that are among the best in the industry,” said
Neil Chapman, senior vice president of ExxonMobil. “Our development
plans that prioritize Guyana, the U.S. Permian Basin, Brazil and
LNG are focused on increasing earnings potential and generating
strong cash flow to fund future capital investments, reduce debt
and maintain a reliable dividend.”
The agreement includes ownership interests in 14 producing
fields operated primarily by Shell, including Penguins, Starling,
Fram, the Gannet Cluster and Shearwater; Elgin Franklin fields
operated by Total; and interests in the associated infrastructure.
ExxonMobil’s share of production from these fields was
approximately 38,000 oil-equivalent barrels per day in 2019.
ExxonMobil will retain its non-operated share in upstream assets
in the southern North Sea, and its share in the Shell Esso gas and
liquids (SEGAL) infrastructure that supplies ethane to the
company’s Fife ethylene plant.
The transaction is expected to close by the middle of 2021,
subject to regulatory and third-party approvals.
ExxonMobil has operated in the U.K. for more than 135 years and
continues natural gas sales, refining and chemical operations, the
marketing of lubricants and petrochemicals, and the marketing of
fuels through a network of more than 1,300 independently owned
Esso-branded retail sites.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy companies, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. To learn more, visit exxonmobil.com and
the Energy Factor.
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Cautionary Statement: Statements of future events or conditions
in this release are forward-looking statements. Actual future
results, including closing of agreed divestments and realization of
contingency payments; performance of and results from other
investments; and other business plans, could vary significantly
depending on a number of factors including the supply and demand
for oil, gas, and petroleum products and other market factors
affecting the oil, gas, and petrochemical industries; the severity,
length and ultimate impact of COVID-19 on people and economies and
actions of governments in response to the pandemic; obtaining
necessary approvals and consents and satisfaction of other
conditions precedent contained in the applicable agreements;
satisfaction of conditions affecting contingent payments; the
development and competitiveness of alternative technologies;
actions of competitors and commercial counterparties; political and
regulatory developments including environmental regulations the
outcome of commercial negotiations; and other factors discussed in
this release and under Item 1A Risk Factors in ExxonMobil’s most
recent annual report on Form 10-K and under the heading “Factors
Affecting Future Results” on the Investors page of our website at
exxonmobil.com.
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