Chevron sells up and exits UK North Sea

Chevron is selling its remaining 19.4% stake in BP-operated Cair oilfield which is in the West of Shetland region, and, produces around 120,000 barrels of oil per day.

It comes as oil producers have increasingly winced at the high tax rates currently levied by the British government – the rate, including supplementary (aka ‘windfall’) taxes, equates to 75%.

In recent months the UK oil lobby has become louder ahead of an upcoming UK election, in which both energy security and climate change will be hot-button topics.

Chevron, meanwhile, is selling up because of its proposed $53 billion acquisition of Hess which gives it access to onshore US shale and newer higher impact offshore projects in Guyana, South America.

The American major has previously said it would target up to $15 billion of asset sales to boost it coffers for the Hess deal.

The North Sea sale could bank around $1 billion, according to reports.