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Report: ConocoPhillips looks to divest North Sea assets

Oil major ConocoPhillips is looking to divest all or a portion of its North Sea production fields in the U.K., sources told Reuters.

The company's operated assets in the region include the Greater Britannia, J-Area and Southern North Sea fields. ConocoPhillips also holds a 24% stake in the Clair Ridge project in the Shetlands, which is operated by BP PLC and is expected to see its first oil this year.

According to its 2017 annual report, ConocoPhillips' production in the North Sea that year was 75,000 barrels of oil equivalent per day.

Like many of its peers, ConocoPhillips is looking to shed its North Sea assets and focus on other, more prolific production areas.

The company recently hiked its estimates for full-year production as the oil and gas major looks to higher-than-expected output from three shale formations in the U.S.

Excluding Libya, ConocoPhillips' first-quarter production was 1.22 MMboe/d, down 0.36 MMboe/d year on year. However, in the Lower 48, combined production in the Eagle Ford Shale, Bakken Shale and Delaware Basin grew 20% year on year.

The company's production in the first quarter hit 163,000 boe/d in the Eagle Ford, while output from the Bakken and Delaware reached 68,000 boe/d and 19,000 boe/d, respectively.

ConocoPhillips had forecast that production from the three plays would grow 22% year over year to average 250,000 boe/d in 2018. The company now expects that full-year production from the Lower 48 will likely exceed that forecast.