CHRYSAOR has been transformed into one of the biggest oil and gas producers in the North Sea after striking a bumper deal to buy the UK business of energy giant ConocoPhillips.

The $2.675 billion (£2.06bn) deal has seen private equity-backed Chrysaor acquire assets which produced around 72,000 barrels of oil equivalent per day (boepd) in 2018.

It triggers a massive increase in Chrysaor’s pro foma 2018 production to 177,000 (boepd), turning it one of the biggest producers in the North Sea.

Chrysaor chief executive Phil Kirk said: “This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production.

“Acquiring ConocoPhillips UK accelerates our strategy and further strengthens our position as one of the leading independent exploration and production companies in Europe. These assets complement our existing operations and, with operating costs at less than $15 per barrel across the enlarged group, our portfolio delivers high margins and significant positive cash flow.”

Ryan Lance, chairman and chief executive of ConocoPhillips, said: “We are extremely proud of the legacy we’ve built in the UK over the last 50 years and are pleased that Chrysaor recognizes the value of this business.

“This disposition is part of our ongoing effort to hone our portfolio and focus our investments across future low cost of supply opportunities.”