ConocoPhillips, the largest U.S. independent oil and gas company, plans to sell its 24% stake in the Clair oilfield, the largest British oilfield in the North Sea. The value of ConocoPhillips’ stake in the oilfield is estimated to be between US$2bn and US$3bn. Clair oilfield is located in the Scottish territorial waters, located west of the Shetland Islands.
The Clair oilfield was discovered in 1977, and was estimated to hold 7 Gbl of oil in place. Production started in 2005 and a second phase, called Clair Ridge, is under development at a cost of £4.5bn (US$7.3bn) and is expected to start production in 2017. Current reserve estimation are subject to controversy, varying from 15 Gboe to 30 Gboe. Other shareholders of the Clair oilfield are BP (28.6%), Shell (28%), and Chevron (19%).
By selling stake in the Clair oilfield, ConocoPhillips pursue its strategy to focus on oil and gas production in the United States and to withdraw from overseas operations. Indeed, the company sold its 20% stake in Lukoil (Russia) in 2011, and its 8.4% stake in the Kashagan oilfield in Kazakhstan for US$5.4bn in 2013.