ConocoPhillips to Sell UK Assets for $2.675B to Chrysaor

Houston-based supermajor ConocoPhillips is selling its two UK subsidiaries to private equity-backed Chrysaor E&P Limited for $2.675 billion plus interest, the company announced Thursday.

The subsidiaries hold ConocoPhillips’ UK exploration and production assets as well as decommissioning liabilities.

There was talk of ConocoPhillips selling its assets to Chrysaor in early April. This comes after ConocoPhillips failed to sell the assets to UK-based chemicals company Ineos last year.  

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

The transaction will add ConocoPhillips’ J Area, Britannia and East Irish Sea assets to Chrysaor’s operated portfolio and will enhance its non-operated stakes in West of Shetland. After the acquisition, Chrysaor will become the largest independent UK producer.

“Pro forma production for 2019 for the combined entity will be 185,000 barrels of oil equivalent per day, said Chrysaor CEO Phil Kirk.

The effective date for the transaction will be backdated to Jan. 1, 2018.

The sale is expected to close in the second half of 2019.