Viaro Energy Acquires Shell and ExxonMobil’s Southern North Sea Assets

Viaro Energy, a leading independent British energy company, has announced that its main operating subsidiary, RockRose Energy Limited, has signed an agreement with Shell U.K. Limited and Esso Exploration and Production UK Limited, subsidiaries of Shell plc and ExxonMobil Corporation respectively, to acquire full ownership of their Shell-operated UK Southern North Sea assets.

Pending regulatory approval, the acquisition will transfer 11 operated offshore assets and one exploration field to Viaro. The assets, which include Shamrock, Caravel, Corvette, Brigantine, Leman, Galleon, Skiff, Carrack Main, Cutter, Carrack East, Barque, and Clipper, are connected to the Shell-operated onshore Bacton Gas Processing Terminal via the Leman and Clipper fields.

In 2023, these assets produced around 28,000 barrels of oil equivalent per day (boepd), accounting for approximately 5% of the UK’s total gas production. The properties also present strong growth opportunities through identified near-field exploration, Viaro said in a statement.

“We are immensely grateful to the Shell and ExxonMobil teams for an exemplary collaboration on this major deal, which represents a crowning achievement of Viaro’s strategic vision in the North Sea to date,” said Francesco Mazzagatti, CEO of Viaro Energy.

With a historical production efficiency of around 90%, the natural gas fields and the Bacton terminal have been crucial to the UK’s energy infrastructure for 56 years.

Viaro estimates 2P volumes of the assets to be 58 million barrels of oil equivalent (boe) and potential extraction of over 120 million boe of net 2C resources. The company plans to maximize economic returns and enhance low-emissions gas production through redevelopment using existing infrastructure.

The Bacton Gas Processing Terminal, crucial for linking North Sea natural gas to the UK National Transmission system and facilitating UK-Netherlands gas flow, received a £300 million investment to upgrade and extend its lifespan. It generates 40% of Britain’s electricity and supplies gas to East Anglia and North London, with optimization potential recognized by the North Sea Transition Authority.

The Bacton terminal is also set to become a key energy transition hub with potential for hydrogen production, carbon capture storage, and offshore wind developments. Viaro plans to conduct feasibility studies to decarbonize the asset using clean technology.

“Shell and ExxonMobil’s Southern North Sea portfolio is not only the backbone of the UK’s energy production and security, but also represents one of the best strategically placed solutions that have the potential to play an important role in the energy transition. This acquisition fits Viaro’s ongoing and planned activities across the energy sector perfectly,” added Mazzagatti.

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