Zennor Petroleum’s completely owned subsidiary, Zennor North Sea has signed an agreement with Mitsui E&P UK (MEPUK) to acquire interests in UK Continental Shelf licences P.213, Block 16/26a, Area B and P.345 Block 16/27b Area B, which represent an 8.97% working interest in the Britannia Field.
The completion of the acquisition is subject to partner and regulatory approvals, and financial details of the deal have not been disclosed.
For Zennor North Sea, the purchase of working interest in the Britannia Field is more strategic in nature given that it has 100% operated working interest in the nearby Finlaggan Field.
Finlaggan field is slated to be developed as a sub-sea tieback to the Britannia platform.
Currently, Zennor is drilling two wells in the Finlaggan field. It plans to provide updates on Finlaggan in the coming weeks.
Zennor managing director Martin Rowe said: “We are delighted with this acquisition which is directly aligned to our Finlaggan project and wider corporate strategy.
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“Creating core infrastructure hubs to deliver cost effective production is central to our approach. The ability to leverage the Britannia infrastructure will provide Finlaggan and the wider portfolio acquired in the 30th Round with a cost effective, fast-track route to production.”
The latest acquisition also aligns with the recently announced 30th Offshore Licencing Round awards under which Zennor secured several 100% operated awards in and around the Finlaggan and Britannia fields.
Among these awards is the Leverett Discovery in Block 21/03d, which may become a future potential tieback to the Finlaggan sub-sea infrastructure.
The deal will double Zennor’s net production to around 5,000 boepd.
Under the agreement, MEPUK will retain majority of the decommissioning liability up to an agreed limit, while Zennor will be be responsible for the remaining.