Premier Oil has signed an agreement to acquire stakes of BP in the Andrew Area and Shearwater assets for $625m.
The acquisition comprises BP’s operating interests in the Andrew area and its non-operating 27.5% interest in the Shell-operated Shearwater.
The Andrew assets include the Andrew platform, five fields and associated subsea infrastructure.
The five fields are Andrew, Arundel, Cyrus, Farragon, and Kinnoull, which produce through the Andrew platform, located about 225km north-east of Aberdeen.
Following the completion of the transaction, the transition of the Andrew assets to Premier Oil is expected to be made a fully operational entity with 69 staff, who operate the assets.
The Shearwater field, which is a high pressure, high temperature reservoir, produces through a process, utilities and quarters platform, located around 225km east of Aberdeen.
Under the terms of the agreement, BP will not transfer the staff associated with the Shearwater sale.
BP targets to complete the sale and transfer of operatorship of the assets at the end of the third quarter of 2020.
The completion of the transaction is subject to the receipt of regulatory and other third-party approvals.
The stake sales in the Andrew area and Shearwater assets are part of BP’s planned programme of $10bn divestments by the end of 2020.
BP North Sea regional president Ariel Flores said: “BP has been reshaping its portfolio in the North Sea to focus on core growth areas, including the Clair, Quad 204 and ETAP hubs. We’re adding advantaged production to our hubs through the Alligin, Vorlich and Seagull tieback projects.”
Benefits of the acquisitions to Premier Oil
Premier Oil has also signed an agreement to buy an additional 25% stake in the Tolmount Area from Dana for $191m plus contingent payments of up to $55m.
Through the acquisitions, the company will add 82mmboe of reserves and contingent resources at an implied cost of less than $10/boe.
The Tolmount Area, operated by Premier Oil, is expected to deliver first gas by end-2020
