Chevron prepares for North Sea exit after more than 55 years

Chevron said it is set to launch the sale of its remaining UK North Sea oil and gas assets, in a move that would mark the US energy giant’s exit from the ageing basin after more than 55 years.

The planned divestment, confirmed to Reuters on May 16, comes as Chevron prepares for the US$53 billion acquisition of rival Hess which it previously said will include $10 billion to $15 billion in asset sales around the world.

The exit will be the latest step in a steady retreat of top oil and gas companies from the declining British basin which pioneered deepwater production in the 1970s, as they focus on newer assets around the world.

Chevron’s assets include a 19.4 per cent stake in the BP-operated Clair oilfield in the West of Shetland region, the largest in the British North Sea with production of 120,000 barrels per day.

BP has said it is considering a third development phase for the field, known as Clair South, which is one of the largest remaining untapped fields in the North Sea.

UK oil and gas production has dropped from a peak of around 4.5 million barrels of oil equivalent per day (boed) in the late 1990s to around 1.2 million boed in 2023.