Northern Petroleum Sells Dutch Assets

Junior oil and gas firm Northern Petroleum reported Tuesday that it has agreed to sell its Netherlands subsidiary to Vermilion Energy for $26.7 million.

The deal will also see Northern receive a 20-percent interest in any net profit generated from the Papekop oil and gas discovery, onshore Netherlands, if it is developed and brought into production. The firm will also receive a 10-percent net profit interest over any future production from unconventional reservoirs that lie primarily in the Posidonia shale sequence.

Northern said its rationale for the sale was based on the cost of developing and increasing production of its Netherlands portfolio to more material levels. This portfolio currently consists of five producing gas fields onshore and one offshore gas field. Average production from these fields during the six months to June 30 was 851 barrels of oil equivalent per day.

Northern said that the required investment to develop the fields further is currently beyond its capacity.

Northern CEO Keith Bush commented in a company statement:

"The assets in the Netherlands have served the group well in providing cash inflow over the last six years, but the time is now right to conclude a sale. The completion of the sale will represent the achievement of the first of three key objectives we set ourselves in August this year. Our attention will now turn to realizing some of the significant latent value held within the company's Southern Adriatic licenses and the testing of our redevelopment play in Canada."

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)
 -  Irish Gas Grid Could Receive LNG from ... (Jul 19)
 -  What's It Take to Land a Job as a Petr... (Jul 14)

Most Popular Articles

From the Career Center
Jobs that may interest you
Load Planner/ Dispatcher Frac Sand
Expertise: Dispatcher|Project Management
Location: Mansfield, TX
United States Houston: Marketing Specialist
Expertise: Business Development|Marketing|Sales
Location: Houston, TX
Intelligence & Risk Assessment Analyst
Expertise: Legal|Risk Management
Location: San Ramon, CA
search for more jobs

Brent Crude Oil : $48.6/BBL 1.12%
Light Crude Oil : $46.34/BBL 1.24%
Natural Gas : $2.9/MMBtu 2.35%
Updated in last 24 hours