Comment

Chrysaor snaps up ConocoPhillips' North Sea assets in US$2.7bn deal

Company on course to be UK’s top producer in 2019

Commenting after Chrysaor agreed to buy ConocoPhillips’ North Sea assets in a US$2.7 billion deal, Romana Adamcikova, senior analyst, North Sea upstream, said: “This deal will make Chrysaor the top producer in the UK in 2019 and keep it among the UK's largest producers for the next few years.

Considering the company was a relatively small producer before it acquired a batch of assets from Shell in 2017, this is a story of incredible growth.”

Ms Adamcikova said that the deal continues a theme seen across the North Sea in recent years with regionally focused, private companies acquiring assets from larger, international players.

Chrysaor has already shown it is willing to take older assets and invest to increase production with its efforts at the Greater Armada Area, which was due to be decommissioned before Chrysaor acquired it from Shell in 2017.

“It could take a similar approach here, particularly with it now becoming operator at the Britannia and J-Area hubs in the Central North Sea, which have potential for further growth,” she said.

“ConocoPhillips is shifting its focus towards lower cost opportunities elsewhere in the world, particularly in the US. Among such a wider global portfolio, UK fields would have struggled to compete for capital.

“Chrysaor also gains a stronger presence in the West of Shetland with a stake in Clair. It already had an interest in the Schiehallion field. There is huge growth potential in the region and it wouldn't be a surprise to see Chrysaor make further moves in the near future, to bolster its mid- to long- term production outlook.”

Insight

Europe upstream week in brief: Two deals for private equity-backed Chrysaor

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