Chevron, the U.S. energy giant, is set to launch the sale of its remaining oil and gas assets in the UK North Sea, marking its exit from the aging basin after more than 55 years of operations. The planned divestment comes as Chevron prepares for the $53 billion acquisition of rival Hess, which is expected to include $10 billion to $15 billion in asset sales around the world.
Chevron’s North Sea assets include a 19.4% stake in the BP-operated Clair oilfield, the largest in the British North Sea with production of 120,000 barrels per day. The company is also seeking to sell its marginal interests in the Sullom Voe oil terminal and the Ninian pipeline SIRGE pipeline systems.
The sale, which could raise up to $1 billion excluding tax benefits, is part of Chevron’s broader strategy to focus on its most profitable assets globally. The move is in line with a steady retreat of major oil and gas companies from the declining British basin, as they shift their attention to newer assets around the world.
The exit follows a review of Chevron’s global portfolio as CEO Mike Wirth seeks to maintain capital discipline in both traditional and new energies. The company has said it would sell between $15 billion to $20 billion in assets as part of the Hess acquisition, which has hit a stumbling block due to a legal conflict with rival Exxon over assets in Guyana.
Chevron has assured that the North Sea sale process is not related to the 35% windfall tax the British government imposed on North Sea producers following the surge in energy prices in 2022. The company said it regularly reviews its global portfolio to assess whether assets are strategic and competitive for future capital.