The deal

Chrysaor, the UK oil & gas independent, is to acquire a package of assets in the UK North Sea from Shell U.K Limited and its affiliates for a price of $3.0 billion.

In addition, future payments may be made between the two companies, contingent upon future exploration results and commodity prices. The transaction is subject to regulatory and partner consents and is expected to complete in the second half of 2017.


Asset package value


boepd produced by the assets in 2016


Barrels of oil equivalent proven and probable (2P) reserves

Chrysaor is acquiring a high quality package of assets which combine low cost production, a substantial reserves and resources base with strong cash flows and a highly competent and skilled workforce. These assets, combined with our own experience and the outstanding team who will transfer from Shell, provide an excellent platform for change and growth in the North Sea.”

- Phil Kirk, Chief Executive

The package consists of Shell’s interests in Beryl, Bressay, Buzzard, Elgin-Franklin, Erskine, Everest, the Greater Armada cluster, J Block, Lomond, plus a 10% stake in Schiehallion.

On completion of the acquisition, Chrysaor will become one of the largest producers of oil and gas in the UK. The assets being acquired produced 115,000 barrels of oil equivalent per day (boepd) in 2016. The redeveloped Schiehallion field is expected to add additional production when it is back onstream in 2017. Current unit operating costs across the portfolio are under $15 per barrel1. The transaction is expected to comprise around 350 million barrels of oil equivalent proven and probable (2P) reserves1 as at the transaction effective date of 1 July 2016.

1 Operating cost and P50 reserve figures provided are Chrysaor estimates and include projects expected to be sanctioned on or shortly after completion. Chrysaor estimates are supported by an independent Competent Persons Report.