Chevron has received an expression of interest from a potential buyer for its 40% stake in the Rosebank field, located in the UK North Sea.
If the proposed deal materialises, it will mark Chevron’s complete exit from the ageing basin. The company has been divesting its other fields in the region. Recently, Chevron agreed to divest its Danish assets to French oil major Total.
Discovered in 2004, the Rosebank project includes estimated recoverable volumes of more than 300 million barrels of oil available. It is managed by Chevron, with Suncor Energy holding 40% stake and Siccar Point Energy owning remaining 20% stake.
Located nearly 75-80 miles northwest of Shetland, Rosebank is one of the largest undeveloped fields in the UK North Sea. Chevron abandoned its plans to develop the field in 2013, months before the oil price began plunging.
Wood Mackenzie North Sea specialist Ross Cassidy was quoted by Heraldscotland.com as saying: “Any buyer for Chevron’s stake in Rosebank will need to have very deep pockets to fund the capital cost of development, which we estimate at more than $6bn in total.”
Cassidy further added that bidders for the stake could either be large players looking to increase their presence in West of Shetland or one of the private equity-backed companies.
In 2017, Chevron’s net daily production in the North Sea averaged 50,000 barrels of oil and 155 million cubic feet of natural gas, as per the data available on the company’s website.
Chevron employs approximately 610 staff and 220 contractors in the North Sea.