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£1.6bn deal with Israeli firm

Chevron becomes latest major to sell North Sea assets

Alba owned by Chevron (Chevron pic)Chevron has become the second major oil firm in under two months to pull out of exploration and production in the North Sea after agreeing the sale of its assets to Ithaca Energy for $2bn (£1.58bn).

The deal includes the Alba (pictured), Alder and Erskine fields as well as the Britannia, Elgin/Franklin and Jade non-operated projects. Chevron’s stake in the BP-operated Clair venture is not included in the deal.

Five hundred employees will transfer to Ithaca which said it saw “exciting growth opportunities” in the North Sea.

The deal follows ConocoPhilips sale of assets to Chrysaor for $2.68bn (£2bn).

Chevron is the second largest US oil producer after Exxon and was among the first oil companies to drill in the North Sea in the 1960s.

The transaction is in line with a recent trend towards smaller operators taking over from the oil majors in exploiting remaining North Sea reserves.

Chevron has been focusing increasingly on shale extraction in the US and in Kazakhstan.

Ithaca is part of Delek Group, controlled by Israeli billionaire Yitzhak Tshuva, and the deal follows the company’s strategy to expand beyond its domestic market and roots as a financial group into an energy business with operational knowledge.

 



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