Japan’s third largest trading house is selling oil assets in the UK North Sea just months after buying interests in six other fields.
The sale by Sumitomo includes stakes in nine producing oil fields, yielding about 5,000 barrels of oil equivalent per day, plus developments and an exploration portfolio.
Sumitomo’s North Sea arm Petro Summit Investment (PSI) UK is seeking offers by the end of next month and has hired investment bank Jefferies to run the auction.
PSI UK chief executive Roy Phillips declined to put a value on the “substantial package”, based in the central UK North Sea, which Sumitomo aims to sell in one go by the end of the year.
The portfolio of assets being put up for auction is believed to be worth hundreds of millions of pounds.
In May, Sumitomo spent about £182million buying stakes in six UK North Sea oil fields when it and two Dutch partners bought Oranje-Nassau Energie from French group Wendel.
Explaining the divestment of older Sumitomo-owned assets yesterday, Mr Phillips said: “We have been digesting what we’ve brought on with what we already have and seeing how much capital we’re going to need to continue our growth plans.
“The package is of interest to a wide range of players, both those already in the North Sea and those contemplating entering the North Sea.”
PSI UK’s partners include Royal Dutch Shell, Talisman Energy, BG Group, Nexen and Venture Production.
The sale is the latest piece of transactional business in the North Sea, where Italy’s Eni is mulling asset sales.
Eni confirmed last month it was considering the sale of some of its North Sea portfolio as part of a periodic review.
Other recent deals in the industry include Abu Dhabi national energy company TAQA expanding its North Sea assets by buying the energy unit of Dutch chemical group DSM for £245.4million.
The British subsidiary of TAQA had previously completed a £420million acquisition of interests in seven oil fields from Shell UK and Esso Exploration and Production (UK).
Last month, UK North Sea-focused oil and gas operator Ithaca Energy said it had completed the sale of the majority of its assets under a deal with Dyas UK – announced at the end of June – worth about £62million.
Venture, Encore Oil and Faroe Petroleum are among other firms to have announced sales or planned disposals in recent months.
Earlier this year, Aberdeen-based Dana Petroleum completed the acquisition of UK North Sea-focused Canadian company Bow Valley Energy for about £125million.
Meanwhile, Aberdeen-based Venture is resisting a hostile takeover bid from Scottish Gas owner Centrica which could lead to many more North Sea assets changing hands.
Accountant and business adviser Ernst and Young has appointed Dale Nijoka to lead its global oil and gas practice. He will be based in Houston but will spend a good deal of time in Bahrain, where the group has recently moved its global oil and gas centre.
E&Y is a leading adviser to the energy sector, with 7,500 oil and gas professionals around the world, including in Aberdeen, where its oil and gas practice is led by Alec Carstairs.
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