BP Sells Southern North Sea Assets to Perenco
BP has agreed to sell a package of its UK Southern North Sea gas production assets to Perenco UK Limited for $162 million in a cash transaction. The sale has an effective date of January 1, 2003 and is subject to UK regulatory consent and other approvals.
The sale includes BP's share in 14 operated gas fields including Indefatigable, East Leman, Davy, Trent, Tyne, Pickerill and Waveney, together with associated pipelines and onshore processing facilities including the Bacton terminal. Perenco has indicated a desire to operate these assets, subject to government and license partner approvals.
BP's share of combined proved gas reserves for these fields is approximately 274 billion cubic feet and BP share of production is around 150 million cubic feet per day or about 26,000 barrels a day oil equivalent. BP's overall current production from the UK North Sea is approximately 750,000 barrels a day.
BP retains a significant business in the Southern North Sea, operating nine gas fields, associated pipelines and the onshore terminals at Dimlington and Easington. BP also owns substantial interests in the Conoco-operated Viking, Valiant and Vulcan fields, and the Shell-operated Sean field. The BP share of production from these fields amounts to some 380 million cubic feet per day or about 66,000 barrels a day oil equivalent.
BP said that the sale would improve returns on its upstream portfolio by reducing operating costs and freeing up capital for investment in other projects offering better profit margins.
BP said: "We are pleased to have reached this agreement with Perenco. The deal brings another new entrant into the UKCS and this can only benefit the province as it matures. We expect that the deal will be completed by 4Q 2003 and will provide all necessary assistance to Perenco to ensure a smooth transfer of the assets."
Details of the complete package of assets being sold are:
|Indefatigable (Inde)||49/18, 49/23||30.77||BP|
The nine Inde and Davy area fields were developed via seven platforms (two manned) and a subsea tieback (Bell). They are situated between 80-100km east of Bacton in Norfolk. The gas from the fields is all routed to the Inde 49/23A platform and then exported to the BP terminal at Bacton (also part of the sale package)
EAST LEMAN AREA
|East Leman||49/27, 49/28F1||48.37||BP|
BP operates the eastern sector of the Leman field (50km east of Bacton). The eastern sector came on stream in August 1968 and has been developed using nine platforms. All gas is routed to platform 49/27A and then exported to the BP terminal at Bacton.
TRENT AND TYNE AREA
Both these fields are developed using a single unmanned platform. Gas is routed to Trent and then via the Esmond Transmission System (also part of the sale package) to the BP Bacton terminal.
OTHER FIELDS AND BLOCKS
First gas for Waveney was in 1998. It has been developed with an unmanned platform and 2 wells. Gas is exported to the ConocoPhillips terminal at Bacton.
TERMINAL AND PIPELINES
|BP Bacton Terminal||42.48||BP|
|East Leman - Bacton Pipeline||48.37||BP|
|Inde - Bacton Pipeline||18.23||BP|
|Esmond Transport System||12.50||GdF|
|Pickerill - Theddlethorpe Pipeline||56.13||BP|
As part of the sale package, BP is selling its equity stakes in the relevant export pipelines and the BP terminal at Bacton. The terminal can handle 2.4bcfd of gas and 2.8mbd of liquids.