BP To Unload North Sea SGA Assets To Perenco

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
400MM
Description

To buy the interests in southern gas assets U.K. North Sea including Cleeton stream fields, West Sole stream fields, Amethyst Field, Dimlington terminal & the company’s Hessle office, gaining 25,000 BOE/d.

Privately held, London-based Perenco U.K. Ltd. plans to buy the interests in southern gas assets (SGA) in the U.K. North Sea from BP Plc, London, (NYSE: BP) for US$400 million in cash.

The assets includes the Cleeton stream fields (including Wollaston, Whittle, Ravenspurn North and Ravenspurn South), the West Sole stream fields (including West Sole, Hyde, Hoton and Newsham), Amethyst field, the Dimlington terminal and the company’s Hessle office. There are manned platforms at West Sole Alpha, Ravenspurn North and Cleeton.

Current net production is 25,000 barrels of oil equivalent a day.

The sale of SGA is part of BP's strategy to develop a more focused North Sea business in the U.K. and Norway. BP has a multi-billion pound investment program currently underway, with four major field development projects in the U.K. and a further two in Norway.

BP expects to divest assets with a total value of $38 billion between 2010 and the end of 2013. Including the agreement to sell SGA, the company has now announced divestments with an expected value totaling approximately $23 billion.

Perenco has made an initial payment to BP of $100 million in cash and the remaining $300 million will be paid on completion, which is expected before the end of 2012. A further $10 million may be paid in the future contingent on the prevailing gas prices. Completion of the sale is subject to a number of third party and regulatory approvals. It is expected that impacted BP employees working for SGA will transfer with the asset to Perenco.

BP North Sea regional president Trevor Garlick says, “Perenco is committed to investing in and developing SGA beyond BP's plans, ultimately providing a longer-term future for the assets and the people who work there. The continued safe operation of SGA will continue to be our priority as we support employees through the transition process.”