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BP and Premier Oil agree new terms for North Sea assets sale

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Oilfield Technology,

Premier Oil has agreed revised terms with BP for Premier's proposed acquisition of the Andrew Area and Shearwater assets in the North Sea.

Premier will pay BP a reduced fee of US$210 million and Premier's estimated revised abandonment obligations have been reduced to approximately US$240 million (pre-tax) from approximately US$600 million (pre-tax).

Principal terms are being discussed with a subset of Premier’s creditors to waive the Group’s financial covenants through to 30 September and to provide continued access to its revolving credit facilities (Stable Platform Agreement); once agreed and finalised, the terms will be put to the wider creditor group for approval.

Tony Durrant, Premier's CEO, commented: “We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the company. The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the company to continue discussions regarding proposed amendments to the Group’s existing credit facilities.”

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