Viaro Energy Acquires Shell and Exxon's UK Southern North Sea Assets

Viaro Energy announced its acquisition of Shell and Exxon's UK Southern North Sea assets, estimated to be valued at $500 million. The deal includes 11 offshore assets and one exploration field, integrating into the Shell-operated Bacton Terminal. This acquisition marks Exxon's exit from the North Sea region, highlighting the retreat of major energy companies from the declining basin.

Independent British oil producer Viaro Energy confirmed on Tuesday it is set to purchase UK Southern North Sea assets owned by Shell and Exxon Mobil.

Although Viaro did not reveal financial specifics, sources previously disclosed to Reuters in May that the transaction could be worth around $500 million.

Under the deal, Viaro will take full ownership of a significant portion of the UK Continental Shelf, including 11 operated offshore assets and one exploration field, all funneling into the Shell-operated onshore Bacton Gas Processing Terminal via the Leman and Clipper fields.

The Bacton Terminal represents a vital conduit for transporting natural gas from the North Sea to the UK National Transmission System, contributing about 5% of the UK's total gas production in 2023 or roughly 28,000 barrels of oil equivalent per day.

Exxon Mobil's exit from the North Sea region signifies the culmination of its presence since 1964, following earlier asset sales to Neo Energy in 2021. Similarly, Chevron is also divesting its North Sea assets.

This withdrawal is part of a broader trend where top energy firms are shifting focus from the maturing British basin to newer projects worldwide. Shell continues to invest selectively in the North Sea, maintaining significant operations like the Penguins redevelopment and a stake in the BP-operated Clair field, aiming to uphold domestic gas production crucial for the UK's energy security.

(With inputs from agencies.)