Shell and Exxon Mobil are on the verge of finalising a deal to divest their jointly-controlled UK North Sea gas fields to Viaro Energy, reported Reuters, citing sources.
It signifies a continued shift away from the mature North
Sea basin by major oil and gas companies to focus on more profitable
projects.
This sale would not only mark a retreat from the region for
these oil giants but also dissolve the longstanding Esso joint venture between
Shell and Exxon, which dates back to 1965.
For Exxon, a US, Texas-based company, this move would
finalise its exit from the North Sea, a region it has been involved in since
1964.
The company previously divested the majority of its central
and northern North Sea assets to Neo Energy in 2021.
While the deal is close to being finalised, sources indicate that its completion is not yet guaranteed.
Shell, Exxon, and Viaro Energy have all refrained from commenting on the potential sale, the news agency said.
Viaro Energy, a British independent producer, has been
expanding its presence in the North Sea.
Since acquiring RockRose Energy in 2020, Viaro Energy has
engaged in several acquisitions, currently producing around 30,000 barrels of
oil equivalent (boe) per day and holding interests in over 30 fields.
Despite the sale, Shell will remain a key player in the
North Sea, operating multiple fields including the Penguins redevelopment and
maintaining a stake In the BP-operated Clair field.
This development comes as Chevron prepares to sell its
remaining UK North Sea assets, signalling an end to its more than fifty-year
presence in the basin.
The UK’s oil and gas production has declined from its peak in the late 1990s of approximately 4.5mboed to around 1.2mboed in 2023.