Private-equity firm HitecVision AS is seeking to sell its British North Sea oil and gas production unit Verus Petroleum (SNS) Ltd., which last year completed a string of large acquisitions ramping up its output, industry and banking sources said.
The sale process is being run by investment bank Jefferies and could fetch $500 million, according to the sources.
HitecVision and Verus Petroleum did not respond to requests for comment. A Jefferies spokeswoman declined to comment.
Aberdeen-based Verus Petroleum outlined last November plans to move to "a new phase of growth" after its oil and gas production rose 12 fold to 18,000 barrels of oil equivalent per day (boe/d) following three key acquisitions.
Verus Petroleum last year bought Cieco, the North Sea subsidiary of Japanese commodity trading house Itochu Corp. for $400 million. It also bought Premier Oil Plc's interest in the Babbage gas field and Equinor ASA's (NYSE: EQNR) stake in the Alba field.
The deals were funded by equity provided by HitecVision, cash and debt.
Verus Petroleum's production averaged 15,500 boe/d in 2018 at an average cost of $11 a barrel, according to its website.
The North Sea has seen a slew of investments in recent years as long-standing oil companies such as Royal Dutch Shell Plc (NYSE: RDS.A) and BP Plc (NYSE: BP) reduce their presence in the aging basin while new, often private equity-backed firms see opportunities to squeeze profits from fields in the region through more nimble operations.
Verus Petroleum's sale process comes as a number of companies are also trying to sell assets in the basin including Chevron Corp. (NYSE: CVX), France's Total SA (NYSE: TOT) and ConocoPhillips Co. (NYSE: COP).
Recommended Reading
Enlink Appoints Dilanka Seimon to Executive Role
2023-08-12 - EnLink Midstream has named Dilanka Seimon as its executive vice president and chief commercial officer.
Kinetik Announces Senior Leadership Promotions
2023-08-27 - The new promotions will report directly to President and CEO of Kinetik, Jamie Welch.
Pearl Energy Backs Voyager Midstream's M&A Aspirations
2023-07-25 - Voyager Midstream Holdings secured an initial capital commitment from Pearl Energy Investments for the acquisition and development of midstream infrastructure in North America.
Enterprise Products Partners Updates Permian Projects, Reports Earnings Slide
2023-08-02 - Lower commodity prices are blamed for the slide in Enterprise Product Partners’ second quarter results.
Chevron Corp. Waives Rules to Retain CEO Mike Wirth
2023-07-24 - Chevron Corp. waived its mandatory retirement age to retain CEO Mike Wirth while CFO Pierre Breber will retire.