Viaro Energy Ltd’s purchase of Shell and ExxonMobil’s North Sea assets represents a significant milestone in the UK energy landscape.
This strategic transaction, with an estimated value of $500 million, gives Viaro control of one of the largest and longest-established gas production portfolios in the region.
Transaction background
Viaro Energy Ltd, an independent British oil company, has announced the acquisition of 11 operated offshore assets and one exploration field from Shell and ExxonMobil.
These assets, linked to the Bacton gas processing terminal, contribute directly to the UK’s national gas transmission network, facilitating the exchange of gas between the UK and the Netherlands.
In 2023, these assets produced around 28,000 barrels of oil equivalent per day, or around 5% of the UK’s total gas production.
Impact on the Energy Sector
This acquisition marks ExxonMobil’s definitive exit from the North Sea region, where the company had been present since 1964.
ExxonMobil had already sold the majority of its assets in the central and northern North Sea to Neo Energy in 2021.
Chevron is also in the process of withdrawing from this aging region.
This gradual withdrawal of major energy companies from the North Sea is explained by their desire to concentrate on newer, potentially more profitable assets elsewhere in the world.
Shell’s North Sea strategy
At the same time, Shell is reviewing its portfolio in 2021 to focus on areas where it has competitive advantages.
Despite this sale, Shell continues to invest in the Jackdaw and Victory gas fields to support domestic production.
The company remains one of the leading producers in the North Sea, operating several fields, including the Penguins redevelopment, and owning a stake in the BP-operated Clair field.
Outlook for Viaro Energy
For Viaro Energy, this acquisition strengthens its position in the UK gas market and underlines its long-term commitment to the UK’s energy security.
Completion of the transaction, scheduled for 2025 subject to regulatory approval, represents a major opportunity for the company to maximize domestic gas production against a backdrop of growing energy demand.
This transaction illustrates the changing dynamics of the UK energy sector, and the trend for major companies to redirect their investments towards more promising markets.
For Viaro, it represents an opportunity to establish itself as a key player in the UK gas industry, contributing to national energy security while operating proven assets.
