Exxon to sell UK North Sea assets for more than $1bn

first_imgExxon sells North Sea assets to prioritise ‘advantaged’ projects in Brazil, Guyana and the US PermianThe US oil giant said the deal advances its broader divestment plans as it looks to streamline its portfolio following a punishing 12 months amid the pandemic, in which it swung to a $22.4bn full-year loss.This included significant charges for the writedown of dry gas assets across North America and Argentina, as the company seeks to offload the “less strategic” parts of its portfolio.Once a prolific location for oil and gas production, the UK North Sea is now a maturing hydrocarbon resource in steady decline, with many large operators exiting the region in favour of lower-cost opportunities.“We continue to high-grade our portfolio by divesting assets that are less strategic and focusing our investments on our advantaged projects,” said Exxon senior vice president Neil Chapman.“Our development plans that prioritise Guyana, the US Permian Basin, Brazil and LNG are focused on increasing earnings potential and generating strong cash flow to fund future capital investments, reduce debt and maintain a reliable dividend.”Exxon will retain stakes in upstream assets in the southern North Sea, and its share in the Shell Esso gas and liquids (SEGAL) infrastructure that supplies ethane to the company’s Fife ethylene plant.For NEO Energy, the transaction makes it one of the UK’s top five oil and gas companies, and gives it expected 2021 production of around 70,000 barrels of oil equivalent per day (boepd) – rising to 80,000 boepd by 2024.It will hold 35 fields in the UK North Sea, both producing and under development, and total reserves of around 300 million barrels of oil equivalent.NEO Energy chief executive Russ Alton said: “This acquisition builds on our existing North Sea portfolio and towards delivering on our ambition to be a leading producer on the UK Continental Shelf.“NEO is well placed, together with its operating partners, to extract value from this and other opportunities, while at the same time focusing on improved environmental performance.” Exxon has set 2021 capital spending at $16bn-$19bn in 2021, and $20bn-$25bn annually through to 2025 (Credit: Wan Fahmy Redzuan/Shutterstock) Exxon has agreed to offload the majority of its oil and gas assets in the UK North Sea to energy investment firm HitecVision for upwards of $1bn.The sale, made to Hitec’s wholly-owned UK subsidiary NEO Energy, comprises ownership interests in 14 offshore fields in the central and northern stretches of the UK North Sea, as well as associated infrastructure.In 2019, Exxon’s share of the production from these assets was roughly 38,000 barrels of oil equivalent per day. European majors Shell and Total also have ownership interests in the projects.The value of the deal may increase by around $300m, contingent on any rise in commodity prices. The transaction is expected to close by the middle of 2021, subject to regulatory and third-party approvals. The sale comes as Exxon seeks to high-grade its portfolio after a tough 2020 to focus on projects in Brazil, Guyana and the US Permianlast_img read more

Read More

Di Canio: I’ve done nothing yet

first_img The 44-year-old Italian took centre-stage at St James’ Park as the side he inherited from Martin O’Neill just a fortnight ago breathed new life into its Barclays Premier League survival bid with a morale-boosting 3-0 victory over arch-rivals Newcastle. It was their first win on Tyneside for 13 years and Di Canio said: “I haven’t done anything yet – when one day we bring this club to the top of this league…” Press Association He went on: “It means we don’t exaggerate because this future is not an early future, but step by step. We have to keep this club in the Premier League and then we can talk about something different. “Obviously, I enjoyed it, but the players were heroes, they were warriors. “Thanks to them, thanks to the fans, thanks to the staff. Di Canio is the last in this group. They are the main protagonists, it is important that they keep going and then we are going to get out of this situation.” A famous victory – Sunderland’s biggest at St James’ since Gary Rowell’s hat-trick helped to secure a 4-1 win in February 1979 – ended a run of nine league games without success and lifted the Black Cats three points clear of the relegation zone with five matches still to play. Di Canio will hope it provides his side with the impetus to push further up the table, but with Champions League-chasing Everton due at the Stadium of Light on Saturday, he knows his players cannot take anything for granted. He said: “They can smile, dance in the dressing room and then once we get back home, recover the energy because it’s only a small step. “It’s a big result, a big step in terms of result for the club’s history, for what it means for the fans. But in terms of points, it is only a small, but very good step to maintain this club in the Premier League.” center_img Paolo Di Canio brushed aside the adulation heaped upon him in the wake of a famous derby victory to promise Sunderland fans he has done nothing yet.last_img read more

Read More

Ozil out for three months

first_imgArsenal’s Mesut Ozil has been ruled out for up to 12 weeks with a knee injury.The 25-year-old midfielder, who is on international duty with Germany, played 90 minutes in Arsenal’s 2-0 defeat at Chelsea on Sunday.But he arrived at the German camp with a problem in his left knee and an MRI scan in Munich on Wednesday showed damage to the joint.The Gunners are already without injured midfielders Aaron Ramsey andMikel Arteta.A statement on the German Football Association website read: “The MRI examination revealed a partial rupture of the outer band of the left knee joint.”The treatment is six weeks of immobilisation of the knee joint. Mesut Ozil is likely to be [out for] 10 to 12 weeks.” Ozil complained of a sore knee after the defeat at Chelsea on Sunday and Arsenal say they advised the German FA of the situation. The former Real Madrid player has now returned to the Gunners for further assessment.”It is too early to say how long Ozil may be out of action,” said Arsenal in astatement on the club website. If the diagnosis is correct, it means Ozil may not be available to Arsenal manager Arsene Wenger until after Christmas.The playmaker signed from Real Madrid for a club record £42.4m in September 2013 and has scored eight goals in 46 starts.He has been criticised for some of his performances, but helped the Gunners win the FA Cup last season – the club’s first trophy in nine years. The injury gives Arsene Wenger further selection problems in midfield, following injuries to Ramsey and Arteta earlier in the season.Ramsey could be out for a further month after limping out of Arsenal’s1-1 draw with Tottenham on 27 September.Olivier Giroud (broken tibia) and Mathieu Debuchy (ankle) also remain out of contention for a lengthy spell and Theo Walcott is still a few weeks away from returning to training after sustaining a cruciate knee ligament injury in January.Ozil will miss Germany’s Euro 2016 qualifiers against Poland on Saturday and the Republic of Ireland next Tuesday.He looks certain to be out of the national team’s fixtures against Gibraltar and Spain in November.last_img read more

Read More