Chrysaor, the UK oil & gas independent, today announces the completion of the acquisition of a package of assets in the UK North Sea from Shell for a price of $3bn, subject to customary adjustments. Future payments may be made between the two companies, contingent upon exploration results and commodity prices. Harbour Energy, an energy investment vehicle managed by EIG Global Energy Partners, is Chrysaor’s principal financial backer.
The package consists of interests in Beryl, Bressay, Buzzard, Elgin-Franklin, Erskine, Everest, the Greater Armada cluster, J Block, Lomond and Schiehallion. Chrysaor is now operator of the Armada, Lomond and Everest hubs.
The transaction sees Chrysaor become the leading independent E&P company in the UK. Production from the acquired assets is forecast to average just under 120,000 net barrels of oil equivalent per day for 2017, with current unit operating costs running at less than $15 a barrel.
The company now has some 400 employees, with approximately 200 based in its operations centre at The Capitol Building in Aberdeen, 150 working offshore and 50 at its corporate headquarters in London.
Phil Kirk, chief executive of Chrysaor, said: “With the acquisition of this package of high quality, low cost production assets, Chrysaor becomes the leading independent in the UK North Sea. We are grateful to Shell for collaborating with our team to ensure a smooth and safe transition. I am excited at the prospect of our highly professional existing and new staff working together with our new licence and supply chain partners to develop and grow the company together.
Safe and efficient operation of the assets is our primary objective as we pursue our development plans. We are already working hard to mature drilling opportunities in the Chrysaor-operated assets, secure further third party business for the hub assets, and actively support viable development initiatives proposed by our partner-operated assets.”
Linda Z. Cook, chairman of Chrysaor, said: “With improving operating costs, competitive fiscal terms and a world class skills base, the North Sea is undergoing a period of rejuvenation. Through its acquisition of the Shell portfolio Chrysaor is now firmly placed to take advantage of this change. Harbour Energy is pleased to provide funding for this acquisition and to continue our active support of Chrysaor in pursuit of its goal to deliver material growth and value.”