Uchenna Izundu
International Editor
LONDON, Dec. 3 -- BG Group PLC and BP PLC plan to swap interests in each other's assets in the UK North Sea in a deal worth £300 million.
BG will gain BP's entire equity stake in Everest, Lomond, and Armada fields and part of BP's equity in Erskine field, operated by Chevron. All of these fields are in the Central North Sea. In return, BG will transfer all of its equity interests in fields in the Southern North Sea to BP.
BG's interest Everest, Lomond ,and Armada fields will rise to 80% from 60%, and it will operate the three fields.
BP, in exchange, will acquire BG's interests in the Southern North Sea for the Easington Catchment Area (ECA) fields (Apollo, Artemis, Mercury, Minerva, and Neptune, which are BG-operated; and Wollaston and Whittle fields), and Amethyst field. BP operates the last three assets.
"Completion of the exchange is expected towards the middle of next year, subject to regulatory and third party approvals," BG said.
The exchange is broadly neutral in value, and production for both BG and BP and no cash will be paid, as it will be executed through transferring equity interests.
Mark Carne, BG Group executive vice-president and managing director, Europe and Central Asia, said: "By focusing on material interests in key hubs, we can increase efficiency and economically develop satellite fields. We have also shown with recent high-pressure, high-temperature finds that there is still significant potential in the Central North Sea."
Dave Blackwood, head of BP's North Sea business, said: "The deal is production-neutral, strengthens BP's position in a core area, [and] allows us to operate more efficiently and therefore to maximize the value of our operations and infrastructure in the Southern North Sea."
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