Faroe Petroleum to buy UK North Sea interests from Tullow

Faroe Petroleum Ltd. has entered into an agreement with Tullow Oil PLC unit Tullow Oil SK Ltd. to buy 53.1% of Tullow’s Schooner unit interest along with 60% of its Ketch asset in the UK southern North Sea to for $75.6 million. The deal is effective Jan. 1.

The sale is expected to be complete by yearend, with Faroe becoming operator of both assets. Of the $75.6 million total consideration, $58.8 million will be paid on completion of the sale with the balance payable on the achievement of cumulative production milestones.

Tullow said it’s continuing to market its remaining southern North Sea gas assets in the UK and the Netherlands, with value being increased in the latter following the gas discovery at the Vincent well earlier in the year.

The move follows the sale of Tullow’s gas assets in Bangladesh and the agreement to sell its Pakistan business last year (OGJ Online, Dec. 17, 2013).

Tullow’s production guidance for the year remains at 79,000-85,000 boe/d, with a pro rata adjustment to be made after the sale of these assets is completed.

The company currently holds 93.1% in Schooner and 100% interest in Ketch.

Related Articles

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected