Shell, ExxonMobil near $500m deal

Shell and ExxonMobil are approaching a deal to sell their jointly-owned gas fields in the southern North Sea to independent British producer Viaro Energy, three industry and banking sources told Reuters.

The potential agreement is estimated to be valued at around $500 million, as per one of the sources.

This sale of the Clipper and Leman Alpha field clusters signifies a continuing trend of major oil and gas companies gradually withdrawing from the ageing basin over recent decades, redirecting their focus towards newer and more lucrative prospects.

For Exxon, based in Texas, this move marks its complete departure from the North Sea, where it has maintained a presence since 1964. In 2021, it offloaded most of its assets in the central and northern North Sea to Neo Energy.

Similarly, US competitor Chevron is also in the process of divesting its last remaining assets in the British North Sea.

While the deal is nearing finalisation, one of the sources emphasised that there are no guarantees it will be signed. Shell, Exxon, and Viaro Energy have all declined to comment on the matter.

Viaro Energy’s acquisition of RockRose Energy in 2020 has positioned it as a significant player in the British and Dutch North Sea, with several other deals under its belt since then.

The company currently produces around 30,000 barrels of oil equivalent per day and holds interests in over 30 fields, according to its website.

The sale of the Clipper and Leman Alpha fields would also mark the end of the Esso joint venture between Shell and Exxon, which began its operations in the North Sea in 1965.

Despite this divestment, Shell remains one of the primary producers in the North Sea, operating various fields, including the Penguins redevelopment, and maintaining a stake in the BP-operated Clair field.