UK Firm Redirects Capital to Permian, Calls Home Market Uninvestable
UK-based BritENERGY Group is acquiring a controlling interest in 13 oil and gas wells across 3,000 acres in New Mexico’s Permian basin, World Oil reports, as the company steps back from what it calls an “uninvestable” home market.
Market Impact
The acquisition covers five producing wells, including two new horizontal wells, near Hobbs in Lea County. BritENERGY is targeting 5 MMbbl of production from the acreage by 2032 and expects roughly $200 million in profit from the development. The wells and associated production facilities represent about $50 million in capital investment, and the company also plans a 300-MW solar development at the same site.
BritENERGY Chairman Garry Mahoney tied the move directly to deteriorating conditions in the UK. “Britain has had enormous advantages in engineering and access to capital. But the country is becoming so hostile to investment that it is heading to energy zero faster than net zero,” Mahoney said. He pointed to the U.S. and Morocco, where BritENERGY is negotiating a separate natural gas production agreement, as more favorable environments. “For energy companies the U.S. and Morocco are open for business,” he said. The New Mexico deal follows a string of UK exits: bp recently announced plans to sell its North Sea upstream business, and Hunting CEO Jim Johnson has separately labeled the UK “uninvestable.” Deloitte audited the acquired U.S. businesses, with Brodies LLP advising BritENERGY on the transaction.
What It Means for Subcontractors
- Two new horizontal wells near Hobbs in Lea County signal near-term completion work: expect demand for fracturing crews, wireline, and flowback services tied to this specific pad.
- The $50 million capital investment figure covers wells and production facilities, an early indicator of scope for civil, E&I, and pipefitting packages as facility construction gets underway.
- A planned 300-MW solar development at the same site opens a separate procurement track for electrical and civil contractors experienced in utility-scale solar, though no construction timeline or EPC has been named yet.
- BritENERGY’s stated 2032 production target for 5 MMbbl suggests a multi-year development program in Lea County, meaning additional drilling packages could follow beyond the initial 13 wells, but subcontractors should confirm phasing details directly with the operator rather than assume a fixed schedule.
- With BritENERGY also negotiating a Morocco gas deal, its US Permian investment is part of a broader capital reallocation away from the UK, a trend worth tracking for other UK-based operators that may follow similar moves into New Mexico or West Texas.
