Shell and ExxonMobil decided to cancel the sale of a portfolio of gas assets in the southern North Sea to the British firm Viaro Energy. The operation, initially announced in July 2024, did not materialize due to market conditions that prevented them from meeting the requirements established to close the deal.
Shell and ExxonMobil’s sale of assets
The transaction contemplated 11 producing gas fields fields on production within the UK Continental Shelf, an additional exploration prospect and the onshore infrastructure of the Bacton Terminal. These assets represented one of the largest continuously producing portfolios in the region.
As reported by Shell in its official statement, the changing business environment was the main obstacle. Although the deal was fully financed, both parties mutually agreed not to go ahead. Viaro Energy, through its CEO Francesco Mazzagatti, confirmed that the decision was consensual after assessing the feasibility of the closure.
Shell will continue to operate the assets that were contemplated in the sale. The oil company and its partner ExxonMobil had initiated a review of its North Sea portfolio as part of an asset optimization strategy. For its part, Viaro Energy maintains a presence in the region, with estimated production of 25,000 barrels of oil equivalent per day and interests in around 60 fields.
Shell and Exxon’s decision puts on hold the possible reactivation of this type of operations in the short term. The British energy industry is watching closely as the major players adjust their portfolios to new market conditions and stricter environmental regulations.
Source and photo: Reuters