BP has announced it is selling part of its interests in an oil field in the UK North Sea as part of a deal totalling $85 million (£68m).
The agreement with EnQuest includes 25% of its 100% stake in the Magnus field, 25% interests in a number of associated pipelines and a 3% stake in the Sullom Voe Terminal (SVT). BP Exploration Operating Company currently holds a 12% share.
The field is estimated to contain 1.54 billion barrels of oil, of which 869 million barrels (56%) are recoverable.
Operatorship of both Magnus and SVT will be transferred to EnQuest subject to partner, regulatory and other third party approvals.
Under the terms of the deal, the company has an option, between 1st July 2018 and 15th January 2019, to buy BP’s remaining interest in Magnus, a further 9% interest in SVT and the remainder of the energy giant’s interests in the pipelines for $300 million (£240m).
Bob Dudley, BP Group Chief Executive said: “EnQuest’s experience of investing in and extending the life of mature assets in the North Sea make them a natural operator of Magnus and Sullom Voe in this later phase of their life.
“We believe this will enable them to prolong the life of the assets, benefiting the region and creating additional value for both EnQuest and BP shareholders.”