The latest planned sale would see it pull out of its remaining interests in the region, including a 19.4% stake in the Clair oilfield, west of Shetland
Chevron, the American energy giant and third-largest in the world by market value, is preparing to sell off its remaining oil and gas assets in the North Sea.
This move signifies the company’s departure from the region after over 50 years. The company confirmed on Thursday that it will put its assets in the basin up for sale, a process which may or may not culminate in a deal. Industry insiders have suggested to Reuters that the sale could potentially rake in up to one billion dollars (£791million).
The formal launch of the sale process is anticipated to take place in June. Chevron was among the pioneers of oil drilling in the North Sea back in the 1960s. However, it has gradually withdrawn from exploration and production, having sold off its drilling assets in 2019.
This latest planned sale would see Chevron divest itself of its remaining interests in the region. This includes a 19.4% stake in the Clair oilfield, located west of Shetland. The decision follows a portfolio review, according to the company.
It aligns with Chevron’s trend of selling off its legacy assets to concentrate on new low-cost projects. The Clair oilfield, the largest in the British North Sea, is operated by BP and produces approximately 120,000 barrels per day.
The sale would also involve Chevron relinquishing its interests in the Sullom Voe oil terminal, situated in the Shetland Islands and managed by energy firm EnQuest. This includes the Ninian pipeline and SIRGE pipeline systems, both of which are connected to Sullom Voe.
A Chevron spokesperson said: “As part of Chevron’s focus on maintaining capital discipline in both traditional and new energies, we regularly review our global portfolio to assess whether assets are strategic and competitive for future capital. A portfolio review has been completed and a decision has been taken, to initiate the process of marketing Chevron’s 19.4% non-operated working interest in the Clair Field and associated assets in the UK North Sea.”
“This includes various working interests in the Sullom Voe Terminal, the Ninian Pipeline, and the SIRGE Pipeline. The process is expected to take multiple months and may or may not result in a sale.”