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Tullow Oil sells North Sea assets to Mercuria for €62m

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Tullow Oil Chief Executive Aidan Heavey. Photo: Bethany Clarke/Getty Images

Tullow Oil Chief Executive Aidan Heavey. Photo: Bethany Clarke/Getty Images

Getty Images

Tullow Oil Chief Executive Aidan Heavey. Photo: Bethany Clarke/Getty Images

Tullow Oil has agreed to sell interests in the Dutch area of the North Sea for €62.7m to a unit of Mercuria Energy.

The transaction involves the sale of a Tullow subsidiary in the Netherlands. The assets include licences that are both operated and not operated by Tullow.

The transaction is effective as of last January and is expected to be completed early next year, conditional on government consent for the intra-group transfer of licence interests to Tullow Netherlands, the division that will be sold.

The assets being sold by Tullow include a suite of seven licence interests and six developed fields that are currently producing 1,500 barrels of oil equivalent a day.

"Tullow's guidance for North Sea production will be revised appropriately when this sale completes," according to the company.

Tullow chief executive Aidan Heavey said that the sale of the assets is a "further step" towards the group's planned divestment of its North Sea gas assets in order to focus its business on conventional light oil.

"The previously announced agreement to sell part of our interests in the UK Schooner and Ketch unit to Faroe Petroleum for $76.6m is on track to complete before the end of the year, and the divestment of the remaining UK and Dutch gas assets is progressing well," he said.

Tullow is one of the largest independent oil, gas and production companies in Europe. Its interests extend across 140 exploration and production licences in 21 countries.

Last week, Tullow said it found more oil in Kenya after drilling a new well, extending the proven reservoir significantly northwards from the South Lokichar basin in the country.

Irish Independent