ConocoPhillips has signed an settlement to divest minority stakes within the Ursa and Europa fields and related services – situated within the Gulf of Mexico (GOM) – to co-venturer Shell PLC for $735 million.
Houston, Texas-based ConocoPhillips is giving up a share of about 8,000 barrels of oil equal a day (boed), based mostly on 2024 manufacturing, with the transaction, it stated in an internet assertion. The amount comes from ConocoPhillips’ 15.96 % stake within the Ursa subject and one % curiosity within the Europa subject.
Additionally it is transferring to Shell its stake in Ursa Oil Pipeline Co. LLC. “The transaction additionally contains an overriding royalty curiosity within the Ursa Area”, stated ConocoPhillips, which acquired the royalty stake as a part of its $22.5 billion merger with Marathon Oil Corp. late final 12 months.
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“Proceeds from this transaction will likely be used for common company functions”, ConocoPhillips stated.
Anticipated to be accomplished within the second quarter topic to customary closing circumstances, the transaction “will improve Shell’s working curiosity in its operated Ursa platform, pipeline, and related fields from 45.3884 % to a most of 61.35 %”, Shell stated individually. The utmost determine is “topic to preferential rights election”, Shell stated.
Because it stands Shell operates the Ursa growth with a stake of about 45.39 %. BP PLC owns round 22.69 %, ECP GOM III LLC 15.96 % and ConocoPhillips 15.96 %.
The Ursa tension-leg platform, roughly 130 miles southeast of New Orleans, began manufacturing 1999. Positioned within the Mars Basin, the sector produced greater than 800 million barrels of oil equal gross over 25 years, in accordance with Shell.
“This focused funding is the most recent instance of how we’re unlocking extra worth from our current advantaged Upstream property and infrastructure”, stated Zoë Yujnovich, director for built-in fuel and upstream at Shell. “The acquisition expands our possession in a longtime long-producing asset that generates strong free money move, whereas additionally offering extra choices for development”.
For ConocoPhillips, “this transaction displays our ongoing dedication to additional strengthen our portfolio by divesting noncore property and exhibits vital progress towards our $2 billion disposition goal”, stated Andy O’Brien, senior vp for technique, business, sustainability and expertise at ConocoPhillips.
At year-end ConocoPhillips reached Decrease 48 divestment agreements amounting to $600 million, towards a objective of $2 billion. It expects to finish the gross sales within the first half of 2025, in accordance with its quarterly report February 6.
ConocoPhillips reported year-end confirmed reserves of seven.8 billion barrels of oil equal with a preliminary reserve substitute ratio of 244 %. “Excluding closed acquisitions and inclinations, the preliminary natural reserve substitute ratio was 123 %”, it stated.
This 12 months ConocoPhillips expects to provide 2.34 million boed to 2.38 MMboed.
To contact the creator, e-mail jov.onsat@rigzone.com
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