Premier Oil PLC, London, has agreed to sell its 33.8% interest in Wytch Farm oil field in the south of England to an undisclosed third party.
The deal’s proposed consideration is $200 million, and Premier will also release letters of credit amounting to $75 million related to future field abandonment liabilities.
Premier just last month reported an agreement to buy 3.75% interest in Wytch Farm from then-partner Maersk Oil North Sea UK Ltd. The deal followed the service of a notice of intention to sell by Maersk and the subsequent exercise by Premier and partner Perenco UK Ltd. of their rights of preemption.
Wytch Farm production net to Premier’s pro forma 33.8% interest was 5,000 boe/d as of June 30. The firm says field production is in slow decline and is forecast to continue for at least another two decades.
Wytch Farm is considered Europe’s largest onshore oil field, though a large portion of it extends offshore. It has been developed with 11 well sites linked to a central gathering station. Production is then exported via pipeline to the Hamble terminal near Southampton for tanker loading.
In addition to Premier’s stake, current interest in Wytch Farm after the Premier-Maersk deal is Parenco 53.8%, Ithaca Energy Inc. 7.4%, and Repsol Sinopec Resources UK Ltd. 5%. The Wytch farm partners also have interests in the offshore Beacon discovery.
