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

Uneven effects seen from new Appalachian pipelines

09/15/2014 Producers in the Appalachian basin will benefit unevenly from markets opening for natural gas from the Marcellus and Utica shales, according to a C...

AAPG ICE: Turkey sees early shale oil development

09/15/2014 Turkey is slightly larger than the state of Texas geographically, yet the country has only seen 4,400 wells drilled since 1940. While Texas’ oil hi...

Giesler joins Miller as chief executive

09/15/2014 Carl F. Giesler Jr. has joined Miller Energy Resources Inc., Knoxville, Tenn., as chief executive officer, replacing Scott M. Boruff, who is now ex...

Miller seeks Buccaneer’s Alaskan assets

09/15/2014 Miller Energy Resources Inc., Knoxville, Tenn., has signed a nonbinding letter of intent to buy Alaskan operating assets of Buccaneer Energy for $4...

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