FILE PHOTO: The logo of JX Nippon Oil & Energy Corp is seen at the refinery in Yokohama, Japan on February 7, 2017. REUTERS / Kim Kyung-Hoon / File Photo
May 25, 2021
By Ron Bousso and Shadia Nasralla
LONDON (Reuters) – Japan’s JX Nippon plans to sell its UK North Sea oil and gas reserves, including stakes in some of the basin’s largest fields, for up to $ 1.5 billion, five banks said.
The sale is the latest deal in the North Sea that marks the handover of assets from oil companies to private companies who say they can make better use of the remaining reserves than big companies focused on the energy transition.
JX Nippon has hired Bank of America and Kirk Lovegrove to advise on the sale of the portfolio, which includes stakes in the Andrew, Culzean and Mariner projects, where JX Nippon is working with BP, Total and Equinor.
According to Total, Culzean’s 300 million barrel reserves alone can meet 5% of UK gas needs.
The fields produced 6,500 net barrels of oil equivalent per day for JX Nippon in 2018 before Mariner and Culzean launched in 2019.
JX Nippon entered the basin in 2002 and purchased additional fields and exploration licenses in the years that followed.
JX Nippon had no immediate comment while Bank of America and Kirk Lovegrove declined to comment.
(Additional reporting by Aaron Sheldrick. Editing by Louise Heavens and Mark Potter)
This article originally appeared on www.oann.com