ZACKS·2026-01-15 17:35Core Insights - Shell plc and Exxon Mobil Corporation have abandoned their planned sale of U.K. North Sea natural gas assets to Viaro Energy due to unmet conditions for deal completion [1][9] - The sale was part of Shell's review of its Southern North Sea portfolio and aligned with Exxon's strategy to reduce its U.K. presence [2] Deal Collapse - Evolving commercial and market conditions were cited by Shell as reasons for not completing the transaction, despite extensive negotiations [3] - The North Sea Transition Authority's prolonged review and request for additional information from Viaro Energy contributed to the deal's abandonment [4] Strategic Importance of Assets - The assets included 11 offshore gas fields, an exploration prospect, and the Bacton gas terminal, which is crucial for U.K. gas supply [5] - Bacton is described as strategically important, capable of supplying up to one-third of the U.K.'s gas demand at peak levels [5] Future Considerations - Shell and Exxon must now explore alternative buyers for the asset portfolio, with previous interest from companies like Ithaca Energy and Perenco [7] - The strategic value of the assets may attract renewed interest as market and regulatory conditions change [7] Industry Context - BP is also planning to sell its stakes in the U.K. North Sea, having announced a sale to Serica Energy for $232 million, which is expected to provide exploration and production opportunities [8]