Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Bids for a portfolio of Exxon Mobil’s British North Sea oil and gas fields, which is expected to fetch around $1 billion following this year’s oil price weakness, are due on Oct. 28, two sources with knowledge of the process said.

Parties that have signalled interest in acquiring more assets in the basin include private-equity (PE) firm HitecVision’s Neo, EIG’s Chrysaor and listed companies, such as EnQuest.

Commodities trading houses are also eyeing the portfolio, one of the sources said on condition of anonymity. Eni, via its joint venture Var with HitecVision, has been buying assets in the Norwegian North Sea.

Story continues below advertisement

“It will be interesting to see in November/December the outcome of Exxon’s UK sale as these competing forms of capital - stock market, PE Funds, Traders - assess who can get most value from this situation,” the other source said.

Any buyer will likely seek to operate the assets, both sources said.

Established independent producers in the British North Sea, such as EnQuest and Premier, are burdened with debt.

Premier is trying to raise equity to buy BP assets, whose past losses could be used to reduce future tax bills, but is also in talks with Chrysaor on alternative deals.

Hitec is considering an acquisition of Suncor’s North Sea assets, one of the sources said.

Most of Exxon’s British operations are managed through Esso Exploration and Production UK, a 50-50 joint venture with Royal Dutch Shell.

The portfolio under discussion, which excludes assets in the southern North Sea, produces around 35,000 barrels of oil equivalent per day, which is expected to increase to just under 60,000 boe/d by around 2023, the sources said.

Story continues below advertisement

Initially, Exxon hoped to raise over $2 billion from the sale, which was initially planned for late last year. In June sources told Reuters the portfolio was more likely to fetch $1 to $1.5 billion given the oil price weakness this year.

HitecVision, EnQuest, Exxon and Chrysaor all declined comment.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies