(Reuters) – Bids for a portfolio of Exxon Mobil’s
Parties that have signalled interest in acquiring more assets in the basin include private-equity (PE) firm HitecVision’s Neo, EIG’s Chrysaor and listed companies, such as EnQuest
Commodities trading houses are also eyeing the portfolio, one of the sources said on condition of anonymity. Eni
“It will be interesting to see in November/December the outcome of Exxon’s UK sale as these competing forms of capital – stock market, PE Funds, Traders – assess who can get most value from this situation,” the other source said.
Any buyer will likely seek to operate the assets, both sources said.
Established independent producers in the British North Sea, such as EnQuest and Premier
Premier is trying to raise equity to buy BP assets, whose past losses could be used to reduce future tax bills, but is also in talks with Chrysaor on alternative deals.
Hitec is considering an acquisition of Suncor’s
Most of Exxon’s British operations are managed through Esso Exploration and Production UK, a 50-50 joint venture with Royal Dutch Shell
The portfolio under discussion, which excludes assets in the southern North Sea, produces around 35,000 barrels of oil equivalent per day, which is expected to increase to just under 60,000 boe/d by around 2023, the sources said.
Initially, Exxon hoped to raise over $2 billion from the sale, which was initially planned for late last year. In June sources told Reuters the portfolio was more likely to fetch $1 to $1.5 billion given the oil price weakness this year.
HitecVision, EnQuest, Exxon and Chrysaor all declined comment.
(Reporting by Shadia Nasralla and Ron Bousso; editing by Barbara Lewis)
