By Micah Maidenberg
ConocoPhillips is exiting the oil exploration and production market in the U.K. after reaching a deal to sell two units that focus on production in the North Sea to Chrysaor E&P Ltd. for about $2.68 billion.
"This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities, " ConocoPhillips Chief Executive Ryan Lance said in prepared remarks.
ConocoPhillips will continue operating a London-based trading business and keep its 40.25% interest in the Teesside oil terminal.
The U.S. oil giant said the U.K. subsidiaries last year produced 72,000 barrels of oil equivalent per day and had proven reserves of 99 million barrels of oil equivalent at year-end.
Closely held Chrysaor was formed in 2007 and focuses on oil and gas in the North Sea.
"This significant acquisition reflects our continuing belief that the U.K. North Sea has material future potential for oil and gas production, " Chrysaor Chief Executive Phil Kirk said in prepared remarks.
The sale is expected to be completed in the second half of this year.
Write to Micah Maidenberg at firstname.lastname@example.org