Uchenna Izundu
International Editor
LONDON, June 17 -- Tullow Oil PLC agreed to sell to Eni SPA its 51.69% stake in Hewett Unit field off the UK as it prepares to increase funds to implement its development programs in Ghana and Uganda.
According to the memorandum of understanding signed by the companies, Eni will pay £210 million for the assets that include the onshore Bacton terminal. It will also gain net commercial reserves of 10 bcf and decommission the field when production wanes.
Hewett's production is 12 MMscfd net to Tullow's interest and Eni is already a partner in the project.
The parties expect to sign the sale and purchase documentation over the coming weeks with closure by the end of 2008, once relevant approvals have been obtained. Eni will become operator of the field and its interest will rise to 89%.
Tullow said that despite the transaction, it was committed to the Southern North Sea gas basin. Thames area fields will continue to export gas via the Bacton terminal.
Contact Uchenna Izundu at [email protected].
