Last week, ConocoPhillips confirmed that it is marketing its assets in the UK. Credit: ConocoPhillips Company.

UK petrochemicals company Ineos is reportedly in exclusive negotiations with US firm ConocoPhillips to acquire its oil and gas fields worth $3bn in the North Sea.

Owned by British billionaire Jim Ratcliffe, Ineos has secured three months’ exclusivity on the potential purchase from ConocoPhillips by paying a deposit, thetimes.co.uk reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The publication added that the deal could be financed by HSBC and Citigroup.

In May, Reuters said that ConocoPhillips was looking to divest its North Sea assets in a bid to focus on US shale gas production.

“The company expects to retain the UK assets if proposed bids fail to meet its expectations.”

Last week, Bloomberg carried a report stating the company is planning to sell assets worth $3bn, including its interest in the Clair field west of Shetland, by the end of the year after receiving an unsolicited offer.

The company expects to retain the UK assets if proposed bids fail to meet its expectations.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Bloomberg also stated that ConocoPhillips’ negotiations with Ineos do not include its Teesside or London assets.

The proposed acquisition is expected to enhance Ineos’ presence in the North Sea, where the company bought several assets in 2015.

Last year, Ineos acquired Danish firm Dong Energy’s North Sea oil and gas business for more than $1bn.

If the company fails to strike a deal with ConocoPhillips, private equity firms Neptune and Chrysaor are expected to make a bid for the US company’s assets, thetimes.co.uk added.

In July, ConocoPhillips entered a deal to exchange its North Sea assets for BP’s Alaskan assets. The transaction included the sale of the company’s 16.5% stake in the Clair field.

With this deal, BP increased its interest in the field to 45.1%. ConocoPhillips retained a 7.5% interest in the field.