Kerr-McGee, an independent US oil and gas producer, is in advanced talks to sell its entire UK North Sea business to Moller-Maersk, the world's biggest shipping company. The sale, which would be one of the biggest in the North Sea, could be announced as early as this week, according to people familiar with the situation. Separately, Centrica, a UK utility group, is expected to announce that it has acquired Kerr-McGee's stakes in four non-operated North Sea oil and gas fields for around $550 mn.

Kerr-McGee's exit from the North Sea comes after a proxy war with Carl Icahn, the corporate raider who took a stake in the company earlier this year and put pressure on management to take a series of measures to boost the share price. These included the sale of non-core assets, such as the chemical business that is the third-biggest producer and marketer of titanium dioxide.
 
Kerr-McGee also informed investors that it would buy back Dollars 4bn of its own stock in an attempt to keep Mr Icahn from taking a seat on its board. Headquartered in Oklahoma City, Kerr-McGee holds $15bn in global assets and proved reserves of more than 1.2 bn barrels of oil equivalent at year-end 2004.
 
The North Sea business produces 63,000 barrels a day of oil and gas, centred mainly on the Gryphon, Janice, Leadon and Tulloch fields. The North Sea represented 20% of Kerr-McGee's reserves at year-end 2004, and about 25% of its 2004 production volumes.
 
Kerr-McGee's second-quarter earnings more than tripled from a year ago as energy prices surged to record highs. Centrica, which owns British Gas, last year sold the AA, the roadside recovery business, to private equity firms CVC Capital Partners and Permira.
 
According to the Wall Street Journal, Maersk is to pay $3.5 bn to acquire the company

(source:seanews)