Noble Energy said on Monday it would sell off all of its stake in the oilfield servicing company after the market collapsed following the Brexit result.
Noble said in a statement it would “sell all of our holdings in Noble Energy for cash to meet the obligations to creditors”.
Noble has a controlling interest in Noble Oil Services Ltd (NOSL) which is owned by UK energy company Shell.
The company has an ownership stake of almost 30 per cent in NOSL, but that figure will now be diluted by more like 20 per cent, according to Reuters.
The oilfield service company was established in 2004 as a joint venture between Noble and the Norwegian energy company Statoil.
In 2016, Noble sold its 50 per cent stake in Nosl for £1.9 billion, which was worth around £1 billion at the time.
The deal was worth more than £300 million at the peak.
In January 2018, NOSl announced it would be sold off by Noble, which said it would hold a share of the company for 10 years, until at least 2025.
Noble has been facing criticism for its poor performance during the Brexit process.
It was among the biggest losers of the referendum, losing a record £3.9bn in revenue in 2017.
In March 2018, the UK government ordered it to repay £7.5bn to taxpayers over the cost of Brexit.
It also faced a £2.2bn deficit after it declared a financial loss.
NOS, however, said it was able to pay the government back on time, due to a combination of favourable tax laws and a favourable regulatory environment.
The Scottish government said on Sunday it was also reviewing whether the government could impose additional restrictions on Noble, such as limiting the company to holding just five per cent of the stock.
The SNP has been the biggest beneficiary of the UK’s financial crisis.
In September, the SNP’s Scottish affairs spokesman Stephen Gethins said that the party would support any efforts by the UK Government to impose new restrictions on the oil and gas industry, such a requirement that Noble hold a greater share of its assets.
“If there is any evidence to suggest that Noble is underperforming its obligations to UK taxpayers, we will seek to make that clear to the Scottish Government,” he said.
The UK has been embroiled in a series of high-profile tax scandals over the past few years, including one which saw the country’s tax payer of the year award the company a £5.5m cheque.
It’s not the first time the oil industry has been affected by the Brexit aftermath.
In December, Shell, the world’s biggest oil company, announced it was closing its $30 billion refinery in North Sea oil sands, citing the global financial crisis as the reason.