Shell and Exxon Mobil have halted plans to sell their natural gas assets in Britain’s Southern North Sea to Viaro Energy, Shell said on Wednesday, underscoring challenges in energy deal-making amid shifting market conditions.
The assets, located offshore the United Kingdom, were part of a divestment strategy by the two oil majors as they reshaped their portfolios and reviewed capital allocation priorities.
Shell said the decision was taken after the parties failed to meet completion conditions, despite what it described as a constructive sales process.
“Commercial and market conditions evolved,” a Shell spokesperson said, without providing further details on the specific hurdles that derailed the transaction.
The move highlights uncertainty in the UK North Sea, where ageing infrastructure, regulatory pressures and volatile gas prices have complicated asset valuations.
For Viaro Energy, which has been expanding its footprint in mature UK gas fields, the pause delays efforts to boost domestic production and extend the life of existing assets.
Shell and Exxon did not indicate whether the sale could be revived at a later date or if alternative buyers are being considered.