Under the terms of the transaction, Kerr-McGee acquired interests in and operates the following blocks:
Kerr-McGee also acquired an approximate 65% non-operating interest in Block 22/15. Commercial terms of the transaction were not disclosed.
"Acquiring positions in these blocks bolsters our commitment to exploring the central North Sea, one of our core operating areas," said Terence Jupp, Kerr-McGee's U.K. managing director. "These blocks are located near existing infrastructure, which would allow for economical development of future discoveries. The acquisition also demonstrates strong alignment with the Department of Trade and Industry's fallow block initiative by stimulating new activity in these blocks. A number of leads are being evaluated."
Tim Summers, director and business unit leader of BP's North Sea business, said, "This deal builds on BP's track record of stimulating industry drilling activity through proactive business development. In this way we create value for BP, the companies with whom we collaborate, such as Kerr-McGee, and the industry in general."
In addition to pursuing an active new business development program, Kerr-McGee expects to drill four to six exploration wells per year in the North Sea. Kerr-McGee operates the Gryphon, Janice, Leadon and Tullich fields in the North Sea.
Kerr-McGee's development planning for the North Sea discoveries at James, Donan and Affleck is progressing. James is being developed as a subsea tieback to the Janice facility with first production expected in early 2005. First oil from Donan and Affleck is expected in mid-2006.
Most Popular Articles