UK-based oil and gas company Viaro Energy reached an agreement with Shell and ExxonMobil for the acquisition of a full working interest in the Shell-operated UK Southern North Sea assets owned by the two supermajors.
Viaro Energy made the deal via its main operating subsidiary RockRose Energy with Shell and Esso Exploration and Production UK, a subsidiary of ExxonMobil.
Pending regulatory approval, Viaro Energy will acquire a portfolio consisting of 11 operated offshore assets and one exploration field, including Shamrock, Caravel, Corvette, Brigantine, Leman, Galleon, Skiff, Carrack Main, Cutter, Carrack East, Barque, and Clipper, all tying back to the Shell-operated onshore Bacton Gas Processing Terminal via the Leman and Clipper fields.
In 2023, production was around 28,000 boepd (around 5% of UK total gas production) and the assets possess strong growth potential through identified near field exploration opportunities.
The tight gas development ongoing in the Galleon and Barque fields and strong potential for tight gas opportunities and near field exploration already identified in the Greater Sole Pit area are both indicative of the fields’ lasting importance for the UK’s energy security, according to Viaro Energy.
Viaro estimates place the 2P volumes of these assets at 58 million barrels of oil equivalent (“boe”), with a projected potential to extract over 120 million boe of net 2C resources. Viaro intends to maximise the economic return of these assets and, by working to ensure the extraction is conducted to reach their fullest potential, to increase low-emissions production of gas in the area through a redevelopment with an existing infrastructure.
The Bacton Gas Processing Terminal provides a direct route for natural gas produced from the Southern and Central North Sea to the UK National Transmission system, operated by the National Grid, enabling gas to flow between the UK and the Netherlands.
Bacton gas is used to generate around 40% of Britain’s electricity and it constitutes the main supply of gas for East Anglia and North London’s homes and businesses.
According to the NSTA, the Bacton terminal is well positioned to become a significant hydrogen production site for London and the Southeast, with strong potential to play a role with carbon capture storage and offshore wind developments that can supply renewable power to Bacton.
In addition, Viaro Energy said it intends to conduct feasibility studies on the best ways to decarbonize this asset through the deployment of clean technology.
“Shell and ExxonMobil’s Southern North Sea portfolio is not only the backbone of the UK’s energy production and security, but it also represents one of the best strategically placed solutions that have the potential to play an important role in the energy transition.
“With strong potential for wind farm synergies, electrification of upstream assets, CCS and hydrogen supply, this acquisition fits Viaro’s ongoing and planned activities across the energy sector perfectly,” said Francesco Mazzagatti, CEO of Viaro Energy.
