Sunday 25 February 2018

Tullow pays almost €300m for Norwegian exploration company

Peter Flanagan

Peter Flanagan

TULLOW Oil has revealed plans to buy a Norwegian exploration company in a deal worth nearly €300m.

In a statement, the Irish company said it will pay $372.3m (€286m) for Spring Energy Norway.

The company also said it will dispose of its exploration, development and production assets in the UK and Dutch Southern North Sea gas basin.

“These two transactions follow Tullow's strategy of active portfolio management and monetisation of non-core assets and will enhance the Group’s considerable oil exploration portfolio,” Tullow added.

Apart from the basic purchase price, Tullow could pay several hundred million dollars if Spring’s current interests turn out to be oil producing.

Spring Energy holds 28 offshore licences across Norway’s continental shelf in the North, Norwegian and Barents Seas covering just over 18,000 sq km, employing 37 people in Oslo,

Company chief executive Aidan Heavey commented: “These transactions are part of an ongoing process of carefully refocusing our business and ensuring efficient allocation of capital by monetising non-core assets and re-investing the proceeds in high potential oil exploration.”

Shares fell more than 5pc in London.

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