Deal insight

Shell sells $3 bn UK asset package to Chrysaor: an in-depth view

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Report summary

This is the largest UK deal since 2010, and largest private equity acquisition since the oil price crash, globally: a significant transaction for both participants, and the wider UK asset market. Chrysaor will pay US$3 billion, potentially rising to US$3.8 billion, contingent upon future exploration results and commodity prices. The acquired portfolio comprises 24 producing assets at various stages of the life cycle, one under-development field and exploration acreage. Key assets are Buzzard, Schiehallion, Beryl and Elgin & Franklin. Shell will be happy to get the deal away: executing a UK disposal, quickly and at acceptable value, was always going to be challenging in a 'stuck' M&A market. PE-backed Chrysaor, meanwhile, is catapulted to the position of third largest producer in the UK (we model acquired production of 120,000 boe/d in 2017).

What's included

This report contains

  • Document

    Shell sells $3 bn UK asset package to Chrysaor: an in-depth view

    PDF 309.81 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 5 images and tables including:

Images

  • WoodMac modelling assumptions: net production and capex
  • Top five UK producers' average production 2017-2020

Tables

  • Upstream assets: Table 1
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

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