Middle East

ConocoPhillips Eyes Gulf of Mexico Exit

July 20, 2022

(File photo; Shell)

ConocoPhillips said it was considering selling its shares in the Gulf of Mexico’s Ursa Platform and Princess Undersea, and people familiar with the matter said Wednesday that it would indicate a withdrawal from deep-sea energy production off the Gulf of Mexico.

Oil producers have offloaded their assets to become key operators in the Permian basin, the heart of the US shale industry. We aim to sell between $ 4 billion and $ 5 billion by the end of 2023.

Conoko holds a financial advisor to sell its 15.9% stake in Ursa / Princess development, which could be valued at a high price of hundreds of millions of dollars, according to two sources.

Sources warned that the transaction was not guaranteed and Konoko could hold assets without securing the right offers. They discussed confidential information on condition of anonymity.

Konoko declined to comment.

Based in Houston, the company has become a major producer of the Permian. This is underpinned by $ 23 billion in spending over the last two years purchasing Shell’s assets and rival concho resources in the region.

US crude oil prices are trading above $ 100 a barrel, hitting a few years high in March, which is good for people looking for potential divestments. According to industry sources, fluctuating commodity prices make it difficult for buyers and sellers to agree on terms.

According to the Conoko website, the net production of Conoko from Ursa / Princess development will be equivalent to an average of 13,700 barrels of oil per day in 2021. Shell is the operator and BP Plc and Exxon Mobil Corp are minority shareholders.

(Reuters-Report by David French, Additional Report by Sabrina Valle, Edited by Marguerita Choy)

https://www.oedigital.com/news/498190-conocophillips-eyes-us-gulf-of-mexico-exit ConocoPhillips Eyes Gulf of Mexico Exit

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