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BP agrees terms to sell North Sea interests to Premier Oil

07/01/2020
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BP has agreed to sell its interests in the Andrew area and the Shearwater field, both located in the central UK North Sea, to Premier Oil for $625 million.

The Andrew platform and five associated fields in the Andrew area are part of BPs deal with Premier Oil
(Image via BP)

BP own and operate several assets in the Andrew area including the Andrew platform, the Andrew field (62.75%), Arundal field (100%), Cyrus field (100%), Farragon field (67%) and Kinnoull field (77.06) plus associated subsea infrastructure in each. 

The five fields all produce through the Andrew platform, located 140 miles north-east of Aberdeen, with an average of 25,000 to 30,000 barrels of oil equivalent per day.

Also part of the deal is BP’s 27.5% stake in the Shearwater field, operated by Shell. This is a high pressure, high temperature reservoir located 140 miles east of Aberdeen that produces around 14,000 barrels of oil equivalent per day. 

Explaining the sale, BP’s 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. 

"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."

In a statement BP said that the Andrew assets are expected to transition to Premier Oil as a fully operational entity with 69 staff who operate and support the assets. Their contractual terms and conditions are protected under UK Transfer of Undertakings (Protection of Employment) Regulations (TUPE).

There is no transfer of staff associated with the Shearwater sale. 

Subject to regulatory and other third-party approvals, BP aims to complete the sale and transfer of operatorship of the assets by the end of the third quarter of 2020.

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BP agrees terms to sell North Sea interests to Premier Oil - Time to read 2 min
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