Chevron to Divest UK North Sea Assets
In a strategic move to streamline its global portfolio, Chevron Corp is initiating the sale of its UK North Sea oil and gas assets. This decision will conclude Chevron’s presence in the region, a tenure extending over 55 years. The company’s departure aligns with a broader pattern of major oil firms withdrawing from the British basin, an area that has seen a decline from its peak production days in the late 1990s.
Among the assets up for sale is Chevron’s 19.4% stake in the Clair oilfield, operated by BP and renowned as the largest in the British North Sea. Despite the field’s significant output and potential expansion plans, Chevron is also looking to offload its interests in the Sullom Voe terminal and its shares in both the Ninian and SIRGE pipeline systems.
Industry insiders suggest that the divestment could fetch up to $1 billion, with formal proceedings set to commence in June. Chevron has clarified that this sale will not affect its London international headquarters or its Aberdeen technology center.
The move is part of a larger strategy by Chevron CEO Mike Wirth to concentrate on the company’s most lucrative assets. This approach has been evident since 2018, with Chevron selling its Rosebank field stake and other North Sea assets to Ithaca Energy in 2019. Other oil giants like Exxon Mobil, ConocoPhillips, and Shell have similarly retreated from the basin over the years.
Analysts observe that this trend underscores a shift towards independents seeking growth opportunities. Chevron’s current portfolio review is not influenced by the UK government’s windfall tax on North Sea producers but is a reflection of the company’s commitment to capital discipline across both traditional and new energy ventures.
The anticipated asset sale is part of Chevron’s broader plan to divest up to $15 billion in assets following its proposed acquisition of Hess, which has recently encountered legal hurdles with Exxon over assets in Guyana. Chevron emphasizes that its North Sea exit is a separate matter and anticipates the divestment process to unfold over several months.
