BP to sell North Sea assets to Premier Oil for $625m

8 January 2020 (Last Updated September 14th, 2020 08:45)

BP has signed an agreement to sell its interests in the Andrew area in the central UK North Sea and its non-operating interest in the Shell-operated Shearwater field to Premier Oil for $625m.

BP has signed an agreement to sell its interests in the Andrew area in the central UK North Sea and its non-operating interest in the Shell-operated Shearwater field to Premier Oil for $625m.

The Andrew assets operated by BP comprise the Andrew platform, and Andrew (with 62.75% stake), Arundel (with 100% interest), Cyrus (100% stake), Farragon (50% stake) and Kinnoull (77.06% interest) fields. All these fields are located about 140 miles north-east of Aberdeen.

BP holds a 27.5% interest in the Shearwater field.

It said that Shearwater field is a high-pressure high temperature (HPHT) reservoir produced through a process and quarters platform. It has produced around 14,000 barrels of oil equivalent per day (boepd) gross in 2019.

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.”

“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.”

Last year, the average daily production from the Andrew platform was around 25,000boepd to 30,000boepd.

BP said that it expects a total of 69 staff working on the Andrew assets to transfer to Premier Oil.

It also said that it will not transfer staff associated with the Shearwater sale.

The deal is expected to be complete the deal in the third quarter of this year subject to approval from regulatory bodies and other third-parties.

BP noted that this forms part of its $10bn divestment programme expected to be completed by the end of this year.