ExxonMobil North Sea Oil Field Sold to Norwegian Private Equity Group

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] ExxonMobil is planning to sell its North Sea oil fields and related infrastructure facilities to the Norwegian private equity group HitecVision, the Financial Times reported on the 24th (local time).

Neo Energy, HitecVision's North Sea business operator, announced the related details on the same day, and the sale amount is expected to exceed at least $1 billion. ExxonMobil explained that the deal is expected to be completed by mid-year, and the sale amount could increase by up to $300 million depending on commodity price fluctuations.

ExxonMobil recorded its first-ever loss since its founding last year. Due to reduced energy demand caused by COVID-19, all four quarters last year resulted in losses, and the company is under pressure from shareholders. Merger rumors with competitor Chevron have also surfaced, and it is known that the CEOs of both companies met at the end of last year.

Amid continued large-scale losses, ExxonMobil announced last year that it would sell assets worth $15 billion. ExxonMobil stated that oil and gas production from the North Sea oil fields sold this time was less than 40,000 barrels per day as of 2019.

Recently, U.S. oil companies have been selling aging North Sea oil fields to reduce costs and focusing on North American shale development. ConocoPhillips sold its North Sea assets for $2.7 billion in 2019, and Chevron also sold its UK business to Israel's Delek Group.

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