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Tullow Oil completes partial sale of UK gas assets

Oilfield Technology,

Last week, Tullow Oil plc announced that its subsidiary Tullow Oil SK Limited has completed the sale of 53.1% of its Schooner unit interest and 60% of its Ketch asset in the UK Southern North Sea to Faroe Petroleum (UK) Limited. Operatorship of Schooner and Ketch will now transfer to Faroe.

Further interest sales

The group continues to market its remaining Southern North Sea gas assets in the UK. In the Netherlands an agreement to sell operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited, for a consideration of US$ 81.1 million, was announced in September. In July, the group also announced the sale of its interests in the Brage field in Norway to Wintershall for a cash consideration of NOK 45 million (US$ 7.5 million).

These transactions, the sale of Tullow’s gas assets in Bangladesh, and the agreement to sell the Pakistan business, is aligned with Group’s strategy of active portfolio management and monetisation of assets.

Faroe Petroleum commentary

Graham Stewart, Chief Executive of Faroe Petroleum, commented: “We are very pleased to announce the completion of this acquisition, which broadens our production base further and both boosts and diversifies our oil and gas production portfolio.

“Schooner and Ketch are good quality producing fields, well known to the company and which offer upside potential in the form of increasing reserves, production and field life. The transaction is tax efficient for us, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production portfolio to continue the efficient funding of Faroe’s ongoing exploration and appraisal programme.”

Edited from various sources by Cecilia Rehn

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