Chevron to sell North Sea oil interests after 55 years

American energy super major confirmed it would market its assets in the basin, thought to be worth up to one billion dollars.

Chevron was among the first oil companies to drill in the North Sea in the 1960s (Andrew Milligan/PA) (PA Archive)

Chevron is gearing up to sell its remaining oil and gas assets in the North Sea, marking the energy giant’s exit from the region after more than five decades.

The American energy super major, which is the third-largest in the world by market value, confirmed on Thursday that it will market its assets in the basin, which may or may not result in a deal.

The sale could raise up to one billion dollars (£791 million), and the process is expected to be formally launched in June, reported Reuters, citing multiple industry sources.

Chevron was among the first oil companies to drill in the North Sea in the 1960s, but has since pulled out of exploration and production after offloading its drilling assets in 2019.

The latest planned sale would see it pull out of its remaining interests in the region, including a 19.4% stake in the Clair oilfield, west of Shetland.

It comes after a portfolio review, the company said, and follows a trend of Chevron selling its legacy assets to focus on new low-cost projects.

The Clair oilfield, the largest in the British North Sea, is operated by BP and produces about 120,000 barrels per day.

The sale would also involve offloading Chevron’s interests in the Sullom Voe oil terminal, also in the Shetland Islands and operated by energy company EnQuest.

That includes the Ninian pipeline and SIRGE pipeline systems which are both linked to Sullom Voe.

A Chevron spokesperson said: “As part of Chevron’s focus on maintaining capital discipline in both traditional and new energies, we regularly review our global portfolio to assess whether assets are strategic and competitive for future capital.

“A portfolio review has been completed and a decision has been taken, to initiate the process of marketing Chevron’s 19.4% non-operated working interest in the Clair Field and associated assets in the UK North Sea.

“This includes various working interests in the Sullom Voe Terminal, the Ninian Pipeline, and the SIRGE Pipeline.

“The process is expected to take multiple months and may or may not result in a sale.”