UK-based exploration and production firm Chrysaor is reportedly set to begin talks to acquire Chevron’s oil and gas assets in the UK North Sea.

The company has appointed investment banks Jefferies and BMO as advisers ahead of talks with Chevron for the transaction, which is valued at more than $2.5bn, Reuters reported, citing unnamed industry and banking sources.

The talks also include the divestment of part or all of Chevron’s 19.4% interest in the BP-operated Clair oil field in the UK  North Sea, which was not initially part of the company’s divestment plans. Sources predict that the company could receive $1bn through the sale of the Clair stake.

Speaking about interest in the Clair field stake, an unnamed spokesperson told Reuters: “While we continue to evaluate our portfolio, we are progressing the Clair projects.”

Chevron said in July that it was seeking to divest its oil and gas assets in the central North Sea, including Alba, Alder, Captain, Elgin/Franklin, Erskine and Jade fields, as well as the Britannia platform and its satellites. The divestment of these assets could generate around $1.5bn.

“While we continue to evaluate our portfolio, we are progressing the Clair projects.”

In October, the company exited Norway through the deal to sell its 20% stake in the PL859 licence in the Barents Sea to DNO as part of its plans to completely pull out from the ageing North Sea basin.

Additionally, the US firm signed an agreement at that time to offload its 40% interest in the Rosebank development in the UK North Sea to Norwegian company Equinor.

Last year, Chevron achieved average daily production of 50,000 barrels of oil and 155 million cubic feet of natural gas from North Sea assets.

The sale of the central North Sea assets and the Clair field stake would mark the company’s full retreat from the ageing UK North Sea basin.

The company looks to focus on earning higher returns from operations elsewhere, including the Permian Basin in Texas and the Tengiz field in Kazakhstan.

Last month, fellow US oil and gas major ConocoPhillips began exclusive discussions with UK firm Ineos for the $3bn sale of its North Sea assets.

Meanwhile, Bloomberg reported that Premier Oil intends to participate in the bidding for Chevron’s North Sea oil and gas assets. Sources told the publication that the company may enter a partnership or buy only the operating rights for the assets.