Chevron the American Multinational energy corporation stated this Thursday that it intend to launch the sale of its remaining UK North Sea oil and gas assets, a move which will mark the exit of U.S. energy giant from the ageing basin after more than 55 years.
The planned exit, confirmed to Reuters on Thursday, comes as Chevron prepares for the $53 billion acquisition of rival Hess which it previously said will include $10 billion to $15 billion in asset sales around the world.
The exit will be the latest step in a steady retreat of top oil and gas companies from the declining British basin which pioneered deep-water production in the 1970s, as they focus on newer assets around the world.
Chevron’s assets include a 19.4% stake in the BP-operated, Clair oilfield in the West of Shetland region, the largest in the British North Sea with production of 120,000 barrels per day.
BP has said it is considering a third development phase for the field, known as Clair South, which is one of the largest remaining untapped fields in the North Sea.
UK oil and gas production has dropped from a peak of around 4.5 million barrels of oil equivalent per day (boed) in the late 1990s to around 1.2 million boed in 2023.
Chevron is also seeking 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, it said in a statement.
The sale could raise up to $1 billion excluding tax benefits, one industry source said. The process is expected to be formally launched in June, industry sources told Reuters.
It will not impact the operations of Chevron’s international headquarters in London or its technology centre in Aberdeen, the company said.
The exit follows a review of Chevron’s global portfolio as CEO Mike Wirth seeks to focus on the firm’s most profitable assets, Chevron 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,” it said.
The process is expected to take months, it added.