The American energy major is reportedly planning to sell its stake of 15.9% in the Shell-operated Ursa/Princess development in the Mississippi Canyon, which is expected to be valued in high hundreds of millions of dollars
ConocoPhillips is reportedly exploring sale of its stake in the Ursa/Princess development. (Credit: ConocoPhillips Company)
ConocoPhillips is mulling to sell its stake in the Ursa oil and gas project and the nearby Princess subsea well (together called Ursa/Princess development) in the US Gulf of Mexico, reported Reuters, citing undisclosed sources having information about the development.
The sale, if executed, will mark the exit of the energy major from deepwater production in the US Gulf of Mexico.
ConocoPhillips holds a stake of 15.9% in the Ursa/Princess development, which is located in the Mississippi Canyon.
The company has engaged a financial adviser to divest the stake in the offshore oil and gas project, which is expected to yield a price of high hundreds of millions of dollars, as per two sources.
However, the sources advised that there was no assurance of a deal and ConocoPhillips may end up retaining the asset in case it doesn’t get a suitable offer.
Shell is the operator of the Ursa/Princess project with a stake of 45.6%. The other partners in the offshore oil and gas project are BP (22.6%), and ExxonMobil (15.9%).
The Ursa field has been producing since 1999. Discovered in 2000, the Princess development is a northern subsalt extension of Ursa.
The Princess field began production in 2002. Currently, it has a tieback to the Ursa tension leg platform.
Ursa and Princess are located nearly 64km southeast of New Orleans, Louisiana.
According to the news agency, ConocoPhillips has been selling assets in a move to become a major producer in the Permian Basin in the US. The company aims to realise proceeds of $4bn-$5bn through divestitures by the end of next year.
Last year, the company bolstered its position in the Permian Basin by acquiring Shell’s operations in the region for $9.5bn.