UK Firm Buys Mitsui's Britannia Stake
UK independent Zennor Petroleum has agreed to buy Mitsui’s stake in the Britannia gas and condensate field in the central area of the UK North Sea, it said September 17.
One of the larger UK gas fields, Britannia produced 1.3bn m3/yr and 1,960 b/d condensate in 2017 (at 100% equity), according to official data from the UK Oil and Gas Authority.
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Zennor will buy the Japanese firm’s 8.97% stake in the field, subject to regulatory and partner consents, effective January 1 2018. It said the deal will double Zennor’s net production to some 5,000 barrels of oil equivalent per day.
"The acquisition of the Britannia field interest is strategic for Zennor given its 100% operated working interest in the nearby Finlaggan field. Finlaggan is scheduled to be developed as a sub-sea tieback to the Britannia platform,” the company said. Zennor is currently drilling two wells as part of the Finlaggan field development.
The acquisition also fits with the recently announced 30th Offshore Licencing Round awards where Zennor was successful with several 100% operated awards in and around the Finlaggan and Britannia fields.
Martin Rowe, Zennor’s managing director, said, “We are delighted with this acquisition which is directly aligned to our Finlaggan project and wider corporate strategy. Creating core infrastructure hubs to deliver cost effective production is central to our approach. The ability to leverage the Britannia infrastructure will provide Finlaggan and the wider portfolio acquired in the 30th Round with a cost effective, fast-track route to production.”
ConocoPhillips operates Britannia, while another US major Chevron is an important partner. Mitsui bought the Britannia stake, along with a 13.3% stake in the Alba oilfield, from BP in 2012 for $280mn.
Map credit: Britannia's operator ConocoPhillips