Shell and ExxonMobil have agreed to sell their stakes in several UK North Sea facilities to London-based Viaro Energy.
Viaro announced this week that it will assume a 100% interest in the Shell-operated assets, marking the British independent's first role as an operator since its founding in 2012. The company holds working interests in more than five dozen projects across the UK and Netherlands.
The deal includes the Bacton gas processing terminal, which supplies about 40% of British electricity demand, along with 11 offshore production assets and one exploration license. Located on the southern UK Continental Shelf, some of the fields have been producing for more than 50 years.
Viaro reports that the acquisition portfolio accounted for about 5% of UK gas production in 2023, equivalent to 28,000 BOE/D. The company estimates the proven and probable reserves of the gas fields to be around 58 million BOE.
Viaro will operate the assets through a subsidiary and said it has identified exploration prospects in the vicinity of current operations. The company added that ongoing development in two of the offshore fields, Galleon and Barque, has shown potential for tight gas production.
A feasibility study is also planned by Viaro to explore the best methods for decarbonizing the Bacton terminal and integrating it with alternative energy systems such as wind power and hydrogen production.
Terms of the deal have not been shared publicly; however, it was first reported by Reuters that the transaction’s value may be around $500 million.
London-based Shell said in a statement that the deal comes after a 2021 review of its UK portfolio which led it to focus on the central and northern areas of the North Sea.
Pending regulatory approvals, the deal will mark an end to ExxonMobil’s presence in the North Sea where it has operated for 60 years. The US supermajor signaled its pending exit back in 2021 when it divested most of its UK asset base to Neo Energy for a sum of more than $1 billion.
