Industry and banking sources said ExxonMobil is planning to restart the sale of its assets in the British North Sea after the delay caused by crashing oil prices and coronavirus outbreak.
Initially, the sale process was meant for late 2019 and at the moment is estimated to raise less than the initial plan after oil prices slumped by 40% since January. The portfolio’s value is unclear, but sources said that the company hoped to raise USD2 billion.
Exxon declined to comment on the issue, and so did the investment bank Jefferies which runs the sale process.
According to the sources, the company has been holding talks with potential North Sea buyers to gain interest in the portfolio. However, there is still a possibility that Exxon would not officially launch the sale process if there are insufficient interests.
Potential buyers include large private equity-backed North Sea producers such as Chrysaor and NEO Exploration & Production. Both refused to comment.
In the British North Sea, Exxon produces 5% of Britain’s daily demand or 80,000 bpd of oil and 441 mcfpd of gas.
According to three banking sources, Exxon is preparing to sell USD25 billion of its assets globally over the next few years to prepare funds to focus on mega-projects. In May, the company also revived the sale of its shares in Azerbaijan’s biggest oil field, informed some sources.
