Canada’s Suncor considers selling North Sea oil and gas fields

By Laura Hurst and Dinesh Nair on 10/21/2020

(Bloomberg) --Canada’s Suncor Energy Inc. is exploring the sale of a handful of oil and gas fields in the North Sea, according to people with knowledge of the matter.

Suncor is studying divesting the 30,000-barrel-a-day Golden Eagle Area on the UK side of the sea, the people said. Its 26.69% stake could be valued at about $400 million, one of them said. It’s also interested in selling smaller assets on the Norwegian side, valued at an estimated $100 million, another person said.

After a slow start to the year as the coronavirus crisis disrupted plans across the industry, asset-sale activity in the North Sea has picked up in the second half. Exxon Mobil Corp. has begun a process to divest its UK fields and Eni SpA is seeking to sell a production vessel in Norway. Chrysaor Holdings Ltd. this month bought independent oil explorer Premier Oil Plc in a reverse takeover.

Suncor hasn’t started a formal sales process, but is engaging with potential buyers that have shown interest in the fields, one of the people said.

Suncor didn’t respond to a request for comment.

The Calgary-based company is also considering selling its 40% stake in the Rosebank venture west of Shetland, one of the people said. The project, operated by Norway’s Equinor ASA, is one of the U.K.’s largest undeveloped fields.

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