Chevron Selling UK Central N.Sea Assets 'Would Continue Trend of Majors'
Chevron selling its assets in the UK Central North Sea would continue the trend of majors divesting non-core UK assets, according to Wood Mackenzie North Sea upstream research analyst Kevin Swann.
"These projects are having to compete for capital on a global scale and simply won't make sense for such big companies but could be core for a more UK-focused player,” Swann said in a statement sent to Rigzone.
“It's interesting to note that it looks like Chevron is planning to keep its interest in large West of Shetland assets, Clair and Rosebank, as that too is following a trend for the majors in becoming more focused on West of Shetland,” he added.
Swann said the West of Shetland area is attractive because it’s “relatively under-explored” compared to the rest of the UK.
“It also has materiality and longevity, with several very large assets already producing, and new infrastructure in place to service any further discoveries,” Swann stated.
A Chevron spokesperson confirmed to Rigzone yesterday that the company had taken a decision to initiate the process of marketing all its UK Central North Sea assets.
“Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for future capital,” the spokesperson told Rigzone.
“A decision has been taken to initiate the process of marketing all our UK Central North Sea assets … This includes Alba, Alder, Britannia (and satellites), Captain, Elgin/Franklin, Erskine, and Jade,” the spokesperson added.
Chevron's presence in the U.K. North Sea spans more than 50 years, according to the company’s website, which highlights that on December 26, 1964, Chevron's joint venture operator Amoseas (American Overseas Petroleum Ltd.) drilled its first North Sea well, 165 miles offshore the United Kingdom.
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