The subsidiaries which indirectly hold Conoco Phillips’ exploration and production assets in the U.K. are being sold to Chrysaor E&P. Conoco Phillips also aims to retain its London-based commercial trading business and its 40.25 % interest in and operatorship of the Teesside oil terminal.
Houston/USA – Conoco Phillips has recently announced that it has entered into an agreement to sell two Conoco Phillips United Kingdom (U.K.) subsidiaries to Chrysaor E&P for 2.675 billion dollars, plus interest and customary adjustments. Together, the subsidiaries indirectly hold the company’s exploration and production assets in the U.K., as well as associated decommissioning liabilities. Conoco Phillips will retain its London-based commercial trading business and its 40.25 per cent interest in and operatorship of the Teesside oil terminal. Proceeds from this transaction will be used for general corporate purposes.
“We are extremely proud of the legacy we’ve built in the U.K. over the last 50 years and are pleased that Chrysaor recognises the value of this business,” said Ryan Lance, chairman and chief executive officer. “This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”
Full-year 2018 production and year-end 2018 proved reserves associated with the U.K. assets being sold were approximately 72 thousand barrels of oil equivalent per day (MBOED) and approximately 99 million barrels of oil equivalent (BOE), respectively.
The effective date for the transaction will be Jan. 1, 2018. The transaction is subject to regulatory approval and other specific conditions precedent. The sale is expected to be completed in the second half of 2019.