Shell and Exxon Halt Sale of Key U.K. North Sea Gas Assets

Shell plc SHEL and Exxon Mobil Corporation XOM have called off their planned sale of U.K. North Sea natural gas assets to Viaro Energy, ending months of negotiations and regulatory engagement. The companies said the conditions required to complete the deal were ultimately not met, prompting a mutual decision to abandon the transaction despite it being fully funded.The proposed sale, agreed in July 2024, involved one of the largest and longest-producing gas asset portfolios on the U.K. Continental Shelf. The asset was under Shell’s broader review of its Southern North Sea portfolio for consolidation and also aligned with Exxon’s strategy to further reduce its U.K. footprint.The Collapse of the DealShell said evolving commercial and market conditions prevented the completion of the transaction. Viaro Energy’s chief executive, Francesco Mazzagatti, confirmed that both sides worked closely over an extended period but were unable to satisfy all completion requirements, leading to a joint decision not to proceed.A key factor was the prolonged review by the North Sea Transition Authority, which had requested additional information from Viaro before reaching a determination. The regulator, which now has expanded oversight of mergers and acquisitions in the North Sea, said it was still awaiting further details from the buyer when the deal was abandoned.Strategic Importance of the AssetsThe assets at the center of the deal included 11 offshore gas fields, one exploration prospect in the Southern North Sea and the onshore Bacton gas terminal on England’s east coast. Shell has previously described Bacton as being of strategic national importance, as it is the sole entry point for gas from Belgium and the Netherlands and is capable of supplying up to one-third of the U.K.’s gas demand at peak levels.With the collapse of the sale deal, Shell will continue to operate the assets. The collapse also comes amid heightened scrutiny of Viaro’s leadership, with Mazzagatti facing criminal charges in Italy and civil forgery and fraud allegations in the U.K., all of which he has denied.Way AheadShell, currently carrying a Zacks Rank #4 (Sell), and Exxon must now consider whether to pursue alternative buyers for the portfolio. Earlier bidding rounds had narrowed potential acquirers to Viaro, Ithaca Energy and Perenco. While the immediate transaction has fallen through, the strategic value of the assets means interest in the portfolio could resurface as market and regulatory conditions evolve.BP p.l.c. BP is another oil and gas major that is planning a sale of its stakes in the U.K. North Sea. In October 2025, BP announced the sale of its North Sea licenses, P111 and P2544, to Serica Energy for a cash consideration of $232 million. BP’s sale deal was anticipated to provide immediate gains to Serica by providing future exploration and production opportunities.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks