Cnooc Weighs Sale of $3 Billion U.K. North Sea Portfolio

(Bloomberg) -- Cnooc Ltd. is considering a sale of its U.K. North Sea portfolio, in what could be one of the biggest disposals in the aging basin by a foreign firm in recent years, people familiar with the matter said. 

China’s biggest offshore oil and gas driller has been reviewing its overseas operations and could kick off a sale process for the U.K. holdings as soon as the next few weeks, the people said. The assets could be valued at as much as $3 billion, the people said, asking not to be identified discussing confidential information.

Cnooc is the operator of Buzzard oil field, one of the U.K’s highest-producing fields, where it has a 43.2% stake. It’s also an operating partner in the Golden Eagle field, with a 36.5% holding, and has interests in the Scott, Telford and Rochelle fields, according to its website. 

The portfolio could attract other Chinese energy majors seeking to boost their global footprint, as well as U.K. explorers keen to grow in the North Sea, according to the people. Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said.  

A representative for Cnooc said the company has no information to disclose, declining to comment further. 

Cnooc is one of the largest remaining international explorers in the North Sea after firms including Exxon Mobil Corp. and Chevron Corp. sold projects to focus on more profitable projects. Independent energy firms have stepped in to fill the gap. Last year, JX Nippon Oil & Gas Exploration Corp. agreed to sell its U.K. North Sea assets to private equity-owned NEO Energy for $1.7 billion.

Cnooc plans to implement share buybacks and guarantee dividends through 2024 after its profit soared to a record last year. The Hong Kong-listed company received regulator approval for its listing in China.

Shares in Cnooc fell as much as 3.8% in early Thursday trading in Hong Kong, ending a three-day gaining streak.

©2022 Bloomberg L.P.