By OGJ editors
HOUSTON, Dec. 21 -- BG Group PLC has agreed to acquire ConocoPhillips's equity stakes in Armada and Everest fields in the Central North Sea for $143 million.
The acquisition will raise BG's interest by 11.45% to 58.22% in Armada gas-condensate field and by 1.0134% to about 59.32% in Everest oil field.
As part of the agreement BG also will purchase ConocoPhillips's 16.89% interest in Block 22/14a, located southwest of Everest.
The deal is expected to close in first quarter 2007.
BG-operated Armada gas and condensate fields—Fleming, Drake, and Hawkins—span five exploration blocks covering 31 sq km. Initial Armada production began in October 1997. Following two development phases completed in September 2002, the field reached average production rates of 170 MMscfd and 6,400 b/d in 2005.
Everest field, operated by BP PLC, reached average production rates of 115 MMscfd and 4,000 b/d in 2005.
Production from BG-operated Maria field will be tied back to Armada. Estimated recoverable reserves for Maria and Maria Horst are about 30 million boe. First production is scheduled for 2007.
Armada and Everest gas moves through the CATS pipeline to Teesside, while the produced liquids move through the Forties Pipeline System to the Kinneil processing plant at Grangemouth.
