BG’s Sale of North Sea Fields Said to StallDinesh Nair
BG Group Plc’s planned sale of its largest operations in the North Sea has stalled as depleting oil resources and higher costs in the region deter buyers, according to five people familiar with the process.
The U.K.’s third-largest energy producer ran a formal process to sell its Armada, Everest, and Lomond fields but could not agree on a deal with potential buyers, the people said, asking not to be identified as the information is private. BG was seeking buyers for the assets in the North Sea for as much as $2 billion, Bloomberg News reported in July.
Ageing oil wells and higher costs are deterring buyers from the North Sea as they seek opportunities in places such as Mexico and Africa. Large oil companies such as BP Plc have sold assets in the North Sea, while others such as Marathon Oil Corp. are seeking buyers for their operations.
A representative for BG declined to comment.