BP to Sell UK Gas Assets to Perenco

BP has announced today a $400 million sale of its interests in assets in the southern gas assets (SGA) of the UK North Sea to Perenco UK. The deal is expected to be completed by the end of this year.

The deal will see Perenco a number of onstream fields, including the Cleeton stream fields, the West Sole stream fields and the Amethyst field, the Dimlington terminal and a number of manned platforms and unmanned installations.

Perenco has paid an initial consideration of $100 million cash to BP for the assets and will pay the $300 million balance once the deal is completed. An additional $10 million could be paid in the future, contingent on prevailing gas prices, BP have said.

The company said Perenco could move the assets beyond what BP had planned for the assets.

"We are pleased to have reached this agreement," Trevor Garlick, regional president for BP North Sea, said today. "Perenco is committed to investing in and developing SGA beyond BP’s plans, ultimately providing a longer-term future for the assets and the people who work there. The continued safe operation of SGA will continue to be our priority as we support employees through the transition process."

Perenco also welcomed the deal today and said that the acquisition of the assets fed into the company's drive for expansion in the area.

"We are very pleased to have reached this agreement with BP,"  General Manager Perenco UK of Eric Faillenet said. "It marks a natural extension of our UK North Sea portfolio and plays to Perenco's core strength of maximising the value of mature fields.  

"Today's news comes shortly after the completion of the acquisition of Wytch Farm, also from BP and, upon completion, we look forward to welcoming the BP team into Perenco and to many years of further production from these assets."

BP also said today that the deal would allow the company to continue its plans to expand into other projects in the North Sea, both in the UK and Norway, with the development of six fields in both countries underway.

"Together with our partners, BP is currently progressing projects in the UK offshore that will involve a total investment of £10 billion over the next five years–representing the highest level of annual investment BP has ever made into the UK’s offshore industry," Mr. Garlick said. "Actively managing our portfolio allows us to concentrate our people, capabilities and investment on sustaining BP’s business in the North Sea for the long term."