According to Bloomberg, ConocoPhillips COP is contemplating the divestment of some of its North Sea assets in Norway.
The company is considering the sale of stakes in assets that include Aasta Hansteen, Alvheim and Grane fields. Per the sources, these fields that are operated by others will likely be sold and the company has already contacted prospective buyers. All the three assets together are expected to garner about $1 billion. ConocoPhillips, however, refused to provide any details in this respect.
In view of the falling oil prices, a number of U.S. producers have been seeking to sell their overseas assets and concentrate on domestic prospects. In fact, last week Reuters reported that ConocoPhillips is making arrangements to sell its noncore oil and gas producing acreage in the U.S. This report highlighted the fact that oil majors have started to accept lower oil prices and are taking steps to maintain profitability in the prevailing conditions.
Some other companies too have started selling their assets. One of these companies – Anadarko Petroleum Corp APC – has put its East Texas acreage up for sale, which is valued at a few hundred million dollars.
Some oil and gas companies, on the other hand, are considering the purchase of assets at a lower cost given the plunge in oil prices. Royal Dutch Shell plc RDS.A, for instance, has agreed to buy BG Group plc for $70 billion, earlier this month.
ConocoPhillips is a major global exploration and production company with operations and activities in 30 countries that include the U.S., Canada, UK/Norway, China, Australia, offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia and Qatar.
With leading positions in both natural gas and heavy crude oil in North America, a legacy position in the North Sea as well as growing exposure to lucrative international regions, ConocoPhillips expects to replace reserves and sustain production growth over the long term.
ConocoPhillips carries a Zacks Rank #3 (Hold). A better-ranked stock from the oil and gas sector, Valero Energy Partners L.P. VLP, sports a Zacks Rank #1 (Strong Buy).
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