Offshore staff
LONDON – Premier Oil has confirmed its intention to complete its proposed acquisition of various producing field interests from BP in the UK North Sea by September 30.
These comprise operatorship of the Andrew Area and interests in the Shearwater area, operated by Shell.
Subject to debt and shareholder approvals, the original sum of $625 million set at the effective date of January 1, 2019 will be offset by around $300 million of interim period cash flows to be retained by BP.
A further $115 million would only become payable based on higher future oil and gas prices. So the revised cash payable on completion of the deal is $210 million, which Premier plans to fund with equity.
At the same time, BP has agreed to retain 100% of its share of existing abandonment costs for Shearwater, and 50% in the Andrew Area.
6/5/2020
