BP to sell North Sea assets to Premier Oil for £474m

BP has agreed to sell a package of its North Sea assets to Premier Oil for a price of £474 million.

Premier Oil will take control of the Andrew platform and BP’s controlling stake in five surrounding fields, as well as BP’s minority stake in the Shell-operated Shearwater field.

It is understood that 69 members of staff on the Andrew assets will transfer to Premier Oil.

The move has been labelled by BP as a “reshaping” of its North Sea portfolio, the BBC reports.

The five oil fields all produce through the Andrew platform, which is around 140 miles north east of Aberdeen.

The Andrew assets comprise the platform itself, and the Andrew, Arundel, Cyrus, Farragon and Kinnoull fields.

BP also holds a 27.5% stake in the Shell-operated Shearwater field.

Ariel Flores, BP North Sea regional president, said: “BP has been reshaping its portfolio in the North Sea to focus on core growth areas.
“As a result of this focus, we have also now decided to divest our Andrew and Shearwater interests, believing them to be a better strategic fit for another owner.

“We are confident that Premier Oil, already a significant operator in the North Sea, is the right owner of these assets as they seek to maximise their value and extend their life.”

Tony Durrant, Premier chief executive, added: “These acquisitions are in line with our stated strategy of acquiring cash generative assets in the UK North Sea.

“We look forward to realising the significant long-term potential of the Andrew and Shearwater assets through production optimisation, incremental developments and field life extension projects.”

It is expected that the deal is to be completed at the end of the third quarter of 2020.

Tags: BP, Premier Oil

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