ConocoPhillips this week completed its previously announced transaction to sell two ConocoPhillips UK subsidiaries to private equity-backed Chrysaor E&P Ltd. for $2.68 billion, Kallanish Energy reports.
Together, the subsidiaries indirectly held the company’s primarily offshore exploration and production assets in the UK, as well as roughly $1.8 billion in asset retirement obligations. Proceeds will be used for general corporate purposes.
“We are pleased that Chrysaor recognizes the value of our UK exploration and production assets, and will continue their development in the future,” said Ryan Lance, chairman and CEO.
ConocoPhillips is retaining its commercial trading business in London and continuing as operator of the Teesside oil terminal.
In the first six months of 2019, production associated with the UK assets sold was 72,000 barrels of oil-equivalent per day (Mmboe/d). There is no impact to ConocoPhillips third-quarter production guidance as a result of the sale.
ConocoPhillips also announced it will record a roughly $120 million charge primarily related to dry hole expense related to exploration activities in the Central Louisiana Austin Chalk trend.
The company also expects to record a non-cash leasehold impairment related to the Austin Chalk acreage.
This post appeared first on Kallanish Energy News.