As a result of this deal, which is subject to DTI approval, BP will increase its interest in License P103 (Block 16/23 South) and entering License P240 (Block 16/22 Arundel). BP will also become Operator of both blocks upon completion of the transaction. These interests will be acquired in exchange for 2.2% of BP's interest in the Alba field which will be reduced from 15.5% down to 13.3%.
Dave Blackwood, Director for BP's North Sea business, said: "We believe this new deal and the agreed transfer of operatorship to BP will advance the development of discovered oil and we are also encouraged by the exploration potential of the block. BP is always looking for opportunities, particularly around our existing acreage where we can create value through innovative and mutually advantageous new business."
The Arundel and Kidd discoveries and associated exploration potential are located adjacent to the Farragon field which BP operates following a successful fast-track development in 2005. This deal is a good example of how changing ownership will lead to additional North Sea activity.
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