UK-based North Sea oil producer Chrysaor has completed the acquisition of ConocoPhillips’ UK oil and gas business for $2.675bn (£2.17bn).

Under the deal, the assets acquired will add nearly 72,000 barrels of oil equivalent per day (boepd), increasing their average production to 195,000boepd in the first half of 2019.

Chrysaor chief executive Phil Kirk said: “The completion of this acquisition confirms Chrysaor’s position as one of Europe’s leading independent exploration and production companies.

“We are now one of the largest UK producers with a portfolio of high-quality, long-life assets complemented by a professional and expert staff.

“As we enter a new chapter for Chrysaor we look forward to welcoming our new colleagues and the safe integration of the two businesses. We have identified a number of exciting growth opportunities in our expanded portfolio and across the CNS.”

Chrysaor will add three material assets to its portfolio

Through the transaction, Chrysaor will add three material assets to its portfolio in the form of Britannia and J‐Block – two new operated hubs in the UK Central North Sea – and a stake in the Clair Field area located in the West of Shetlands region.

The acquisition is funded from existing cash resources and an upsized $3bn (£2.4bn) Reserve Based Lending (RBL) debt facility underwritten by Bank of Montreal, BNP Paribas, DNB Bank, and ING Bank.

Chrysaor’s joint financial advisors for the acquisition were BMO Capital Markets and Jefferies International.

The transaction has an effective date of 1 January 2018.

The transaction does not include ConocoPhillips’ London-based commercial trading business and its interest in the Teesside oil terminal.

In 2017, Chrysaor, backed by private equity firm EIG Global Partners, had signed an agreement to acquire a package of UK North Sea oil and gas assets from Shell for $3.8bn.

Founded in 2017, Chrysaor focuses on developing and commercialising oil and gas resources.