RockRose to Buy Marathon Oil's UK Business
Independent oil and gas company RockRose Energy plc has signed an agreement to acquire 100 percent of Marathon Oil U.K. LLC (MOUK) and 100 percent of Marathon Oil West of Shetland Limited (MOWOS) from subsidiaries of Marathon Oil Corporation.
The consideration payable by RockRose to Marathon Oil in connection with the acquisition is circa $140 million, subject to customary adjustments. RockRose currently anticipates this will be funded through existing resources and facilities.
The transaction is expected to close in the second half of 2019, with an effective date of January 1. MOUK and MOWOS assets and teams in Aberdeen, Peterhead and offshore will transfer with MOUK and MOWOS to RockRose on completion of the acquisition.
MOUK holds 37-40 percent operated interests in fields in the Greater Brae Area and MOWOS holds a 28 percent interest in the BP plc operated Foinaven Field unit and a 47 percent interest in Foinaven East, respectively. The acquisition also includes interests in the SAGE, Brae-Forties and WASPS infrastructure.
"This acquisition marks a major step change in the group's reserves and production profile. Given the quality of these assets the board's view is this is a good opportunity to make the transition to the role of operator,” RockRose Executive Chairman Andrew Austin said in a company statement.
“We look forward to welcoming Marathon Oil UK employees, who have an excellent track record operating in the North Sea, to the RockRose team at closing,” he added.
Commenting on the deal, Marathon Oil Chairman, President and CEO Lee Tillman said the announcement to divest its UK business represents the company’s “continued commitment to portfolio management and further concentrates our portfolio on high margin, high return U.S. resource plays".
"I'd like to recognize the significant contributions of our UK employees, both current and past, who built and have operated the Brae Field for more than 30 years,” he added.
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