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BP agrees to sell North Sea assets to Premier Oil in deal worth around £470mil

Tuesday January 7th 2020 at 10:47 AM

BP has agreed a deal to sell its interests in the Andrew area in the central UK North sea to Premier Oil for around £475mil.

The Andrew platform.

The oil and gas giant will also hand over its 27.5% non-operating interest in the Shearwater field. 

Under the terms of the deal, Premier Oil will pay BP $625mil (approx £475.2mil).

Around 70 members of staff who operate and support the Andrew area will transfer to Premier Oil as part of the deal, which it’s hoped will be completed by the third quarter of 2020.

The assets comprise the Andrew platform, associated subsea infrastructure and a number of fields. 

Ariel Flores, BP North Sea regional president, 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.

“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.”

The five fields in the Andrew area, which started production in 1996, all produce through the Andrew platform, which is located about 140 miles north-east of Aberdeen.

In 2019, average daily production was around 25,000 to 30,000 barrels of oil equivalent per day.

The Shearwater field is a high pressure, high temperature reservoir produced through a process, utilities and quarters platform, located around 140 miles east of Aberdeen.

Shearwater’s 2019 production has been in the region of 14,000 barrels of oil equivalent per day gross.

The sales are the latest step in BP’s planned programme of $10 billion divestments by the end of 2020. 

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