Shell Plc and Exxon Mobil Corp. have scrapped a planned sale of strategic UK North Sea gas assets to Viaro Energy after regulators sought more information and commercial conditions shifted during a monthslong review.
Regulatory Review Stalls Strategic Asset Sale
Shell and Exxon said Wednesday they were unable to complete the proposed divestment of the Bacton onshore gas terminal and eleven offshore facilities after extended engagement with the North Sea Transition Authority.
The regulator requested additional information from Viaro before making a determination, prolonging the review and preventing the transaction from meeting completion conditions, the companies said.
“We worked constructively with all parties over an extended period, but the conditions to close were ultimately not satisfied,” a Shell spokesperson said in a statement. Exxon confirmed the decision was mutual and followed a reassessment of market and commercial dynamics.
The North Sea Transition Authority, which recently gained expanded oversight of mergers and acquisitions in the basin, said it was still awaiting further information from the prospective buyer to reach a final view.
Bacton Terminal Holds National Importance
The assets include the Bacton terminal on England’s east coast, which Shell has previously described as being of strategic national importance to the United Kingdom’s energy system.
Bacton serves as the sole entry point for natural gas imports from Belgium and the Netherlands and can supply up to one-third of the country’s gas demand during peak periods, according to Shell.
Energy analysts say the terminal’s role in cross-border gas flows and storage makes it a sensitive asset for regulators assessing ownership changes.
A Shell and Exxon for the North Sea Transition Authority said the regulator’s focus is ensuring that “any transaction supports secure energy supplies, environmental obligations and long-term stewardship of critical infrastructure.”
Viaro’s Buying Spree Paused Amid Legal Headwinds
The collapse of the deal halted an acquisition run that had made Viaro the most active buyer of UK oil and gas assets over the past five years, based on data compiled by Bloomberg.
Francesco Mazzagatti, Viaro’s founder, said the companies worked closely to try to complete the sale. “Despite significant efforts on all sides, evolving market and commercial conditions meant the transaction could not proceed,” he said.
The abandoned deal comes as Mazzagatti faces criminal charges in Italy and civil forgery and fraud allegations in the United Kingdom, which he has denied. Late last year, a London Court of Appeal overturned an earlier ruling in his favor related to a joint venture dispute with an Abu Dhabi firm.
Shell and Exxon must now decide whether to seek alternative buyers. Previous bidding rounds had narrowed the field to Viaro, Ithaca Energy Plc and Perenco SA.
Exxon continues to scale back its UK asset footprint, while Shell has spun off its UK North Sea business and combined it with Equinor’s to form Adura, with Shell remaining operator of the assets.
