E.ON sells 100% North Sea businesses

E.ON has sold all of its oil and gas fields in the UK North Sea. UK Premier Oil paid $0.12 billion (£0.08bn) to acquire the German company’s exploration and production (E&P) subsidiaries. […]

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By Jacqueline Echevarria

E.ON has sold all of its oil and gas fields in the UK North Sea.

UK Premier Oil paid $0.12 billion (£0.08bn) to acquire the German company’s exploration and production (E&P) subsidiaries.

It includes interests in 40 licences, including a 5.2% percent interest in the Elgin-Franklin field and 47% interest in the Babbage field.

E.ON claims the transaction will have an economic impact in the company worth $0.62 billion (£0.42bn).

The divestment represents the second and final step in E.ON’s review process of its E&P in the North Sea.

The deal is expected to add around 15,000 barrels of oil equivalent per day to Premier’s production this year.

E.ON Chief Financial Officer Michael Sen said: “This transaction further strengthens our financial profile and provides flexibility to implement our strategy and to reposition the Group. The outcome demonstrates that E.ON E&P is a high performing business with a strong asset base and superbly professional employees. Premier has a long history in the UK and I am convinced that the company will continue to build on this success story in the future.”