Exxon set to revive North Sea sale after months of delays

Exxon set to revive North Sea sale after months of delays
  • Clock-gray 10:31
  • calendar-gray 12 June 2020

Exxon Mobil (XOM.N) is preparing to restart the sale of its British North Sea assets after weaker oil prices and the coronavirus outbreak led to months of delay, industry and banking sources said, APA reports citing Reuters.

The sale process, initially planned for late last year, is expected to raise less than originally expected after a 40% drop in oil prices since January and their weakened long-term outlook.

The top U.S. oil company has in recent weeks held talks with a number of potential North Sea buyers to gauge interest in the portfolio, four sources with direct knowledge of the discussions said on condition of anonymity.

Exxon is unlikely to officially launch the sale process if it finds there is insufficient interest, the sources said.

Exxon declined to comment.

“As a matter of practice, ExxonMobil does not comment on market rumours or speculation about our business plans,” Exxon spokeswoman Julie King said.

Most of Exxon’s British operations are managed through Esso Exploration and Production UK, a 50-50 joint venture with Royal Dutch Shell (RDSa.L), and include interests in nearly 40 oil and gas fields.

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