Premier Oil is set to make more than US$800 million in acquisitions, including the purchase of BP’s North Sea offshore interests.
At a price of US$625 million, Premier will purchase BP’s operating interest in the Andrew area – the Andrew platform and the Andrew (67.75 per cent BP interest), Cyrus (100 per cent), Farragon (50 per cent) and Kinnoull (77.06 per cent) fields, along with the associated subsea infrastructure.
Additionally, Premier will acquire BP’s 27.5 per cent stake in the Shell-operated Shearwater field, as well as an additional 25 per cent interest in the Tolmount Prospect, which it already operates, from Dana Petroleum for US$246 million.
The Andrew area is located approximately 225 km northeast of Aberdeen and in 2019 had an average daily production of around 25,000–30,000 boe/d.
Shearwater’s is situated to the east of Aberdeen and BP yielded approximately 14,000 boe/d gross from the project last year.
BP North Sea Regional President Ariel Flores said the company believed the assets were a better strategic fit for another owner and Premier was already a significant operator in the North Sea.
“BP has been reshaping its portfolio in the North Sea to focus on core growth areas, including the Clair, Quad 204 and ETAP hubs,” said Mr Flores.
“We’re adding advantaged production to our hubs through the Alligin, Vorlich and Seagull tieback projects.”
All 69 staff employed on the Andrew assets are expected to transition with the sale to Premier, with the workers’ contractual terms and conditions protected under UK employment regulations.
BP said there is no transfer of staff associated with the Shearwater deal.
The Tolmount Prospect, also in the North Sea, is a gas project operated by Premier with an estimated peak production rate of 200 MMcf/day.
First gas on the project is expected later this year.
Premier Chief Executive Tony Durrant said the acquisitions were in line with the company’s strategy of obtaining cash generative assets in the UK’s North Sea.
“The cash flow generated from the acquired assets will also accelerate the deleveraging of Premier’s balance sheet,” said Mr Durrant.
For more information visit the Premier website.
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