ConocoPhillips has entered into an agreement to sell two ConocoPhillips United Kingdom (U.K.) subsidiaries to Chrysaor E&P Limited for US$2.675 billion, 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. ConocoPhillips will retain its London-based commercial trading business and its 40.25% 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 recognizes 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.