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BP to sell certain North Sea oil interests to Premier Oil

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Oil and gas giant BP has agreed to sell its interests in the Andrew area in the central UK North Sea, as well as its non-operating interest in the Shearwater field, to Premier Oil.

BP is operator of the Andrew assets, comprising the Andrew platform, as well as the Andrew, Arundel, Cyrus, Farragon and Kinnoull fields and associated subsea infrastructure. The company owns a 27.5% stake in the Shell-operated Shearwater field.

Under the terms of the deal, Premier Oil will pay BP $625 million (€558.9 million) for the assets.

"BP has been reshaping its portfolio in the North Sea to focus on core growth areas, including the Clair, Quad 204 and ETAP hubs,” noted Ariel Flores, BP North Sea regional president. “We're adding advantaged production to our hubs through the Alligin, Vorlich and Seagull tieback projects.

"As a result of this focus, we have also now decided to divest our Andrew and Shearwater interests, believing them to be a better strategic fit for another owner. We are confident that Premier Oil, already a significant operator in the North Sea, is the right owner of these assets as they seek to maximise their value and extend their life."

The five fields that comprise the Andrew area all produce through the Andrew platform, which is located around 140 miles north-east of Aberdeen, Scotland. The hub began production in 1996; in 2019, average production was between 25,000-30,000 barrels of oil equivalent per day.

The Shearwater field is a high-pressure, high-temperature reservoir produced through a process, utilities and quarters platform, located approximately 140 miles east of Aberdeen. In 2019, the field produced around 14,000 barrels of oil equivalent per day gross.

The asset sales are the latest step in BP’s planned programme of $10 billion (€8.9 billion) worth of divestments by the end of 2020. Subject to approvals, BP aims to complete the sale and transfer of operatorship of the assets by the end of Q3 2020.