The arrival of two new companies into the North Sea could be the start of an on-going pattern as major’s looks to sell off some of their smaller assets, according to a top expert.

Professor Alex Kemp said the sale of Shell’s Anasuria assets to new smaller player Hibiscus and Ping Petroleum showed companies are still prepared to buy into the UKCS market.

The company announced in February last year – before the decline in oil price – that it was looking to sell of the Anasuria FPSO and its surrounding assets.

Kemp said: “The first point, Shell actually indicated some time ago that it would be trying to sell some mature assets. This is consistent with the strategy they have indicated some time ago.

“The interesting point I guess, is the introduction of two new entrants into the North Sea and new players that are not well known.

“What does that mean? It means smaller companies are still interested In the North Sea, even new ones and are prepared to buy mature assets.

“The positive point is that new entrants can be found who are interested in our mature assets. It’s well known that the majors want to sell some more of them.

“A mature asset which doesn’t give a substantial remaining potential to a major could be valuable to a small company. If you’re a major your assets have got to bring returns which are valuable from the point of view of other major companies.

“Its the case that a smaller company might get bigger benefits for a given valuation – but a mature asset may not show up much on the profit or loss page of a big company but it could have a major impact for a smaller company.

“Small companies could be interested in the assets because managing them at lower costs could still give them higher margins.”

Earlier this week Shell revealed it would be making the sale after more than a year on the market.

The Anasuria is located the 175km east of Aberdeen in the UK Central North Sea and consists of a 100% interest in the FPSO, Teal, Teal South Guillemot A fields and a 38.65% interest in the Cook field.

Both Hibiscus and Ping said the sale “brings two new entrants into the North Sea” and reflects the support of the UK Government to encourage “smaller independents to invest and revive the North Sea basin.”

Shell has had a 50% equity share in the Anasuria with its joint venture partner Esso Exploration and Production UK Ltd.

https://www.energyvoice.com/oilandgas/84506/smaller-companies-could-seize-mature-assets-as-shell-sale-marks-sign-of-things-to-come/