Tullow Increases Gas Interests

Tullow Oil plc has announced that it has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million from the Vattenfall Group.

The acquisition of Nuon E&P significantly enhances Tullow's North Sea business, adding a portfolio of 25 licences that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure.  The portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

Tullow said that the Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

Tullow's European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands.

Click to view the Nuon acquisition map

Source: Tullow Oil plc