BG and BP complete North Sea asset swap

BG and BP have completed the exchange of certain North Sea assets, details of which were announced by both companies earlier this year.

The main features of the exchange package - which included producing fields, pre-sanction assets and exploration acreage - were the transfer to BP of all BG's interests in the Brae fields, and the transfer to BG of all BP's interests in the Atlantic, Elgin/Franklin and Neptune fields.

The transaction, which involved a payment from BG to BP of £21.5 million in cash, helps consolidate BG's UKCS assets and also provides development opportunities.

As a result of the exchange, BG has assumed the operatorship of the Atlantic field, and is currently reviewing options for its planned joint development with the Cromarty field, operated by Amerada Hess.

Under the exchange, BG has acquired from BP:

  • 1.76% of the Elgin/Franklin fields and associated infrastructure
  • 18% of the Neptune gas field in the Southern North Sea
  • 75% of the Atlantic discovery (block 14/26a) in the Outer Moray Firth and 41.67% in blocks 14/26b and 14/27a
  • 14.7% of blocks 29/4d (Glenelg discovery) and 29/4f

BP has acquired from BG:

  • 6.2% of East Brae and 7.7% of Brae South, Central, North and the Beinn field, located beneath Brae North
  • 3.85% of the SAGE (Scottish Area Gas Evacuation) system which runs from the Beryl and East Brae platforms to the St Fergus terminal
  • 1% of the Braemar discovery (in blocks 16/3b and 16/3c)
  • 50% of block 49/30a (North) near the Sean field in the Southern North Sea