BP to sell North Sea assets to Premier Oil in £475m deal

It is the latest step in BP’s planned programme of £7.6bn of divestments by the end of 2020

BP has agreed to sell two of its major assets in the North Sea to Premier Oil in a deal worth $625 million (£475m).

It includes the Andrew assets – comprising the Andrew platform, the Andrew, Arundel, Cyrus, Farragon and Kinnoull fields and associated subsea infrastructure – as well as its 27.5% stake in the Shell-operated Shearwater field.

The five fields in the Andrew area all produce through the Andrew platform, which is located around 140 miles north-east of Aberdeen.

The hub, which started production in 1996, produced around 25,000 to 30,000 barrels of oil equivalent per day on average last year.

Production from the Shearwater field stood at around 14,000 barrels of oil equivalent per day in 2019.

The Andrew assets are expected to transition to Premier Oil as a fully operational entity with 69 staff who operate and support them, however, there will be no transfer of staff with the Shearwater sale.

The sales are the latest step in BP’s planned programme of $10 billion (£7.6bn) of divestments by the end of 2020.

Ariel Flores, BP North Sea Regional President 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. We are confident that Premier Oil, already a significant operator in the North Sea, is the right owner of these assets as they seek to maximise their value and extend their life.”

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