Chevron looks to sell last UK North Sea oil and gas assets with Clair exit

Chevron is looking to sell its last UK upstream oil and gas assets with a sale of its minority stake in the BP-led Clair oil field as well as infrastructure in and around the Shetland Islands, it said May 16.

Chevron stressed the proposed exit was not a reflection of UK business, tax or political conditions, but an effort to rationalize its global portfolio.

"As part of Chevron's focus on maintaining capital discipline in both traditional and new energies, we regularly review our global portfolio to assess whether assets are strategic and competitive for future capital. A portfolio review has been completed and a decision has been taken to initiate the process of marketing Chevron's 19.4% non-operated working interest in [Clair] and associated assets," a Chevron spokesperson said.

"This includes various working interests in the Sullom Voe Terminal, the Ninian pipeline, and the Shetland Island Regional Gas Export (SIRGE) pipeline," the spokesperson added.

"The process is expected to take multiple months and may or may not result in a sale."

Located in Atlantic waters west of the Shetland Islands, the Clair field is spread over 220 square miles and produces heavy crude, atypical for UK oil fields.

First brought on stream in 2001, it is expected to produce for decades with the help of multiple development phases. BP has been looking at a potential third phase following startup of the second phase, Clair Ridge, in 2018.

Clair production averaged just over 60,000 b/d in 2023. Production from Clair Ridge has fallen short of expectations, peaking at barely half the 120,000 b/d capacity of the platform in October 2021, official statistics show.

Chevron together with US counterparts was central to the development of the North Sea oil industry, but most US companies have now left, with ConocoPhillips retaining a significant Norwegian presence.

Chevron sold a stake in the UK Rosebank oil project, now under development by Norway's Equinor, in 2019, and went on to sell other North Sea assets to Ithaca Energy.

Chevron is one of nearly 20 joint owners of the Enquest-operated Sullom Voe terminal, loading point for the flagship Brent crude blend, volumes of which have been in steep decline.

The Platts Dated Brent benchmark was assessed at $81.45/b on May 15, up 89 cents on the day. Platts is part of S&P Global Commodity Insights.