NEO Energy in Talks to Buy North Sea XOM Assets

NEO Energy in Talks to Buy North Sea XOM Assets
HitecVision and NEO Energy have entered into exclusive negotiations with ExxonMobil to purchase the company's upstream assets in the central and northern North Sea.

HitecVision and NEO Energy have revealed that they have entered into exclusive negotiations with ExxonMobil to purchase the company’s upstream assets in the central and northern North Sea.

If successful, the negotiations are expected to result in a signed sales agreement in the first quarter of this year, with an expected close later in 2021, HitecVision and NEO Energy noted.

ExxonMobil is responsible for approximately five percent of UK oil and gas production, according to its website. The company has an interest in around 40 producing offshore oil and gas fields in the North Sea, although many of these fields are operated by Shell U.K. Exploration and Production as part of a joint operation, ExxonMobil’s website shows.

In October last year, Exxon revealed that it plans to reduce staffing levels across its UK business. In a company statement released at the time, ExxonMobil anticipated that approximately 400 positions would be impacted in the UK by the end of this year.

Back in August 2020, NEO Energy completed the acquisition of a portfolio of operated and non-operated assets in the UK North Sea from Total Oil UK Ltd and Total E&P North Sea UK Ltd. The transaction consists of a material, cash generative portfolio of assets in four producing areas of the UK North Sea, with an average 2019 production of approximately 23,000 barrels of oil equivalent per day and substantial development upside, according to NEO Energy.

NEO Energy describes itself as a full cycle UK Continental Shelf focused energy business. The company has strong institutional backing from HitecVision, NEO Energy’s website states. HitecVision describes itself as a leading provider of institutional capital to Europe’s energy industry. The business has been investing in the energy industry for more than three decades, according to its website.

To contact the author, email andreas.exarheas@rigzone.com



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