Chrysaor buys ConocoPhillips UK oil assets

CHRYSAOR has agreed to buy ConocoPhillips North Sea assets for US$2.67bn, making it one of the largest producers in the region.

The purchase adds 72,000 bbl/d to Chrysaor’s output, lifting production by 68% to 177,000 bbl/d. With production expected to climb to more than 185,000 bbl/d this year, it places Chrysaor at second on the largest producers list after BP, according to figures from Reuters.

The deal will see Chrysaor take over operations in two hubs in the UK Central North Sea, Britannia and J-Block, and secure a 7.5% interest in the BP-operated Clair Field located in the burgeoning west of Shetland region.

Chrysaor’s rise to prominence in the North Sea started out with its US$3.8bn acquisition of Shell’s assets in 2017.

“This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production,” said Chrysaor CEO Phil Kirk. “These assets complement our existing operations and, with operating costs at less than US$15 per barrel across the enlarged group, our portfolio delivers high margins and significant positive cash flow.”

Chemicals firm Ineos was interested in acquiring ConocoPhillips assets to strengthen its own presence in the region where it already owns the Forties Pipeline System that delivers most of the oil and gas to shore.

ConocoPhillips will retain its 40% stake in the Teesside oil terminal.

“We are extremely proud of the legacy we’ve built in the UK over the last 50 years,” said Ryan Lance, CEO of ConocoPhillips. “This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”