Japan Petroleum Exploration (JAPEX) is considering exiting the North Sea as it seeks buyers for its stake in the Seagull oil and gas field, Reuters has reported.
According to the news agency, JAPEX is calling for bids for its 15% interest in the BP-operated field.
“We are exploring all possible measures to enhance the value of the UK operation, and it (a potential exit) is one of the options under consideration,” Reuters quoted a JAPEX spokesperson as saying.
The spokesperson added that a final decision has not been made.
Citing a document it had seen, Reuters said that JAPEX is considering either selling its stake in Seagul or selling its local unit.
Reuters said that it expects the bid deadline for JAPEX’s stake in December 2024, with the exact value of the stake unclear.
The 50-million-boe Seagull field started production in late 2023, with its two wells producing around 25,000 boepd.
The potential to drill an additional two wells could see this ramp up to as much as 50,000 boepd in future.
Developed by Neptune Energy as a subsea tieback to the BP-operated Eastern Trough Area Project (ETAP) in the central North Sea, around 140 miles east of Aberdeen.
BP (LON: BP) holds 50% of the project while Neptune held the remaining 35% interest in the field prior to its takeover by Italian major Eni and its subsequent business combination with Ithaca Energy.
JAPEX formed a partnership with Norwegian Longboat Energy last year, with analysts warning that the Japanese company was put off of the UK market due to windfall tax being “particularly damaging” to the firm.
The partnership brought millions of dollars of investment from JAPEX in exploration in Norway.
Longboat later sold its majority 50.1% stake in its Norwegian operations to JAPEX for $2.5 million, plus its share of drawn debt.
A potential JAPEX exit would add to the list of developers leaving the ageing North Sea as production wanes and government policies aim to accelerate the UK’s transition away from oil and gas.
These include Canada’s Suncor and China’s Sinopec in 2023, with ExxonMobil looking to sell its stakes in the Clipper and Leman Alpha field clusters to independent energy producer Viaro Energy.
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