ConocoPhillips has signed an agreement to divest its oil and gas business in the UK to Chrysaor Holdings for $2.675bn.

The transaction will add three material assets to Chrysaor’s portfolio. It includes two new operated hubs in the UK Central North Sea, Britannia and J‐Block and an interest in the Clair Field area in the West of Shetland.

As part of the agreement, ConocoPhillips will also transfer the responsibility of the ongoing decommissioning programme of its exhausted assets to Chrysaor.

The assets under the transaction produced around 72,000 barrels of oil equivalent per day (boepd) last year.

As at 1 January 2018, ConocoPhillips UK assets contain more than 280 million barrels of oil equivalent Mboe) proved and probable (2P) oil and gas reserves. The deal will increase Chrysaor’s pro forma 2018 production to 177,000boepd, making it one of the prominent oil and gas producers in the UK North Sea.

“This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production.”

Chrysaor chief executive Phil Kirk said: “This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production.

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“Acquiring ConocoPhillips UK accelerates our strategy and further strengthens our position as one of the leading independent exploration and production companies in Europe.”

ConocoPhillips will continue to retain its London-based commercial trading business as well as its 40.25% stake in the Teesside oil terminal.

ConocoPhillips chairman and CEO Ryan Lance said: “This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”

The transaction is expected to close in the second half of 2019, subject to regulatory approval and other customary conditions.