Chrysaor Deal 'Prime Example' of Getting Assets Into the Right Hands
Chrysaor’s deal to acquire Spirit Energy’s interests in the Armada Area fields in the central North Sea is a prime example of getting assets into the right hands through mergers and acquisitions, according to Fiona Legate, North Sea upstream senior research analyst at Wood Mackenzie.
“Chrysaor is planning to implement a late-life investment project … We assume the project will include further drilling, which is likely to be accelerated now Chrysaor is the sole owner of the assets,” Legate said in a statement sent to Rigzone.
Wood Mackenzie highlighted that the fields produced 8,300 barrels of oil equivalent per day (boepd) in 2017 and confirmed that the previous partners had planned to cease production this year.
Following the deal, Wood Mackenzie expects Chrysaor will still look to grow its portfolio both organically and inorganically.
“This private equity player has a declining asset base, with production dropping below 100,000 boepd by 2020. Our view is that larger acquisitions will be needed if the company is to monetize this portfolio in the near term,” Legate said.
Chrysaor announced Thursday that would acquire Spirit Energy’s entire interests in the Armada, Maria and Seymour fields. The deal is expected to complete in the second half of 2018.
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