Shell has closed the sale of certain UK North Sea assets to oil and gas development company Chrysaor, in a transaction valued at around $3.8bn.

The transaction was agreed in January and includes an initial payment of $3bn, an additional $600m between 2018 and 2021, and potential payments of up to $180m linked to future discoveries.

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The assets comprise the company’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Area, the Greater Armada cluster, Everest, Lomond, and Erskine, in addition to a 10% stake in Schiehallion.

Chrysaor chief executive Phil Kirk said: “With the acquisition of this package of high quality, low-cost production assets, Chrysaor becomes the leading independent in the UK North Sea.

“With improving operating costs, competitive fiscal terms and a world-class skills base, the North Sea is undergoing a period of rejuvenation.”

“Safe and efficient operation of the assets is our primary objective as we pursue our development plans. We are already working hard to mature drilling opportunities in the Chrysaor-operated assets, secure further third-party business for the hub assets, and actively support viable development initiatives proposed by our partner-operated assets.”

According to Chrysaor, the acquired assets are estimated to enhance its production by nearly 120,000 net barrels of oil equivalent a day for this year.

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Even after the sale, Shell will continue its operations in the UK North Sea.

Chrysaor chairman Linda Cook said: “With improving operating costs, competitive fiscal terms and a world-class skills base, the North Sea is undergoing a period of rejuvenation. Through its acquisition of the Shell portfolio, Chrysaor is now firmly placed to take advantage of this change.”

The deal will also see the transfer of around 253 staff from Shell to Chrysaor.