Kerr-McGee, the Oklahoma City-based energy and inorganic chemical company, is to sell all its North Sea operations for approximately $3.5 billion in cash.
The transactions include the sale of interests in four nonoperated fields and related exploratory acreage and facilities to Centrica for approximately $566 million and the sale of all the remaining North Sea assets through the sale of 100% of the stock of Kerr-McGee (GB) and other affiliated entities to Maersk Olie og Gas, a subsidiary of AP Moller – Maersk, for $2.95 billion.
The North Sea assets include proved reserves of approximately 231 million barrels of oil equivalent (BOE) that produced a daily average of approximately 77,700 BOE during the second quarter of 2005, representing approximately 21% of Kerr-McGee’s total production during that period.
Kerr-McGee’s also plans to sell off its Gulf of Mexico shelf properties and selected US onshore properties. In addition, the company is proceeding with the separation of its chemical business either through a sale or IPO/spinoff.
The company expects to complete the majority of the divestments before the end of the year.
