MOL expands upstream portfolio in North Sea

MOL Group has signed a Sale and Purchase Agreement (SPA) with Premier Oil UK Limited, to acquire shareholding interest in Central North Sea offshore assets in six licences.

The transaction contains certain assets of Premier Oil including a balanced mix of existing and new production, as well as both operated and non-operated exploration opportunities in the Scott-Telford and Rochelle Area, for a consideration worth US$ 130 million.

Exploration portfolio

The portfolio includes equity stakes in the Scott (21.84%), Rochelle (15%) and Telford (1.59%) fields, as well as participating interest in further exploration licences such as the Rochelle Upper Jurassic deep prospect.

The acquisition is estimated to increase MOL’s reserves by 14.3 million boe from the three producing fields (Scott 9.3 million, Rochelle 4.4 million, Telford 0.5 million), deriving from 73% oil and 27% gas.

UK production

Year-to-date production from these assets has averaged 3.7 million boepd, while the peak production of the assets is expected to reach 6.3 million boepd in 2016. Overall, UK peak production for MOL is now expected to reach 20 – 22 million boepd in 2018.

The Scott, Telford and Rochelle assets are operated by Nexen.

Comments

Alexander Dodds, MOL Group Executive VP for Upstream, commented: “This transaction extends the presence of MOL Group on the global map of offshore E&P and provides several additional strategic rationales.

“Building on our already existing assets in the UK North Sea, this acquisition represents a significant step forward in growing a solid sizeable North Sea portfolio. I am certain that these assets are of considerable quality and will bring further positive results. The synergies gained with this transaction will complement MOL’s ambitions, and help realize the company’s vision of considerable growth of its international portfolio.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30062014/mol_expands_upstream_portfolio_with_north_sea_acquisitions_938/