Exxon Mobil Corp. agreed to divest some of its U.K. North Sea upstream assets on Feb. 24 in a deal potentially worth up to $1.3 billion as the U.S. oil major looks to free up capital for projects elsewhere.

“We continue to high-grade our portfolio by divesting assets that are less strategic and focusing our investments on our advantaged projects that are among the best in the industry,” Neil Chapman, senior vice president of Exxon Mobil, said in a statement noting the company’s development plans currently prioritize Guyana, Brazil and LNG projects as well as its position in the Permian Basin in the U.S.

In a company release on Feb. 24, Exxon Mobil said it agreed to sell the U.K. North Sea assets to NEO Energy, a portfolio company of HitecVision AS, for more than $1 billion. The agreement also includes roughly $300 million in contingent payments based on an increase in commodity prices.

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Offshore