Shell and ExxonMobil have reached an agreement to sell two gas fields in the North Sea for $500m (£390m), despite the fact that the companies are continuing their retreat from the UK oil basin.
The two are finalizing a deal for the sale of Clipper and Leman Alpha in the southern part of the North Sea, to UK-based Viaro Energy.
Shell and ExxonMobil have owned Clipper and Leman Alpha, two major gas sites, via a joint-venture since the mid 1960s.
The oil giants have shifted their focus away from the North Sea.
Reuters reported that the deal is almost done, but it could still fail.
ExxonMobil has sold its North Sea assets in bulk to Neo Energy, a private equity-backed company in 2021. However, it retained a 50% stake in Clipper and Leman.
ExxonMobil will no longer be involved in the North Sea, after almost 60 years.
This announcement comes just days after US oil giant Chevron announced that it would also be leaving the North Sea after more than 55 years.
After a review, the group, which is the third largest oil company in the world, announced that it would be leaving the region. It will sell investments in North Sea assets that are expected to fetch between $800m-$1bn.
Last week, it was reported that the North Sea Oil Industry faces an uncertain future due to the General Election. Labour plans to increase the windfall tax on oil and gas profits introduced by the Conservatives by 2022.
The production in the North Sea is declining steadily since the 1990s as oil majors invest in more lucrative assets in other parts of the world.
Viaro Energy, a smaller player on the market, has benefited from this.
The firm was founded in London by Francesco Mazzagatti in 2012. Its primary mission was to invest in North Sea.
The group’s initial major move in 2020 was to acquire RockRose Energy, giving it a foothold within the region.
Wood Group, a consultancy for oil and gas based in Aberdeen, said it received a new takeover bid on Tuesday from a rival company based in Dubai, Sidara.
Wood’s board rejected the previous three proposals by Sidara for undervaluing Wood.
Wood announced that it would examine the new offer.
Shell, ExxonMobil, and Viaro have declined to comment.
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