5th Sep 2014 06:17
LONDON (Alliance News) - Tullow Oil PLC Friday said it has agreed to sell some of its gas assets in the Netherlands to a subsidiary of Mercuria Energy Group Ltd for EUR62.7 million, part of its strategy to sell its North Sea gas assets so that it can focus on conventional light oil.
In a statement, the company said it is selling it operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests by selling its Tullow Netherlands BV subsidiary to Mercuria Energy subsidiary AU Energy BV.
The deal is expected to complete in early 2015, as long as the Dutch government approves the transfer of the L12/L15 and Q block non-operated licence interests to Tullow Netherlands BV.
The Tullow L12/L15 and Q block portfolio comprises a suite of seven licence interests and six developed fields producing 1,500 barrels of oil equivalent per day net to Tullow.
"Tullow's guidance for North Sea production will be revised appropriately when this sale completes," it said.
The company has already agreed to sell its interests in the Schooner and Ketch gas fields in the UK portion of the North Sea to Faroe Petroleum for USD75.6 million, a deal it says is on track to complete before the end of the year. It added Friday that the sale of its remaining UK and Dutch gas assets is progressing well.
By Steve McGrath; [email protected]; @stevemcgrath1
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