ConocoPhillips Sells UK E&P Subsidiaries
ConocoPhillips has completed its previously announced transaction to sell two ConocoPhillips UK subsidiaries to Chrysaor E&P Limited for $2.675 billion, plus interest and customary adjustments. Together, the subsidiaries indirectly held the company’s exploration and production assets in the UK, as well as approximately $1.8 billion in asset retirement obligations.
ConocoPhillips also announced that it has discontinued exploration activities in the Central Louisiana Austin Chalk trend. The company will record approximately $120 million pre-tax to Lower 48 dry hole expense in the third quarter, primarily related to this play. The company also expects to record a non-cash leasehold impairment related to the acreage.
“We are pleased that Chrysaor recognizes the value of our UK exploration and production assets, and will continue their development in the future,” said Ryan Lance, chairman and CEO. “Our business legacy in the UK reflects a 50-year history of achievement and operational excellence. Our workforce there should be proud of their accomplishments, and we look forward to maintaining our commercial trading business in London and continuing as operator of the Teesside oil terminal.”
In the first six months of 2019, production associated with the UK assets sold was 72 Mboepd. There is no impact to third-quarter production guidance as a result of the sale.