BP: signs agreement to sell assets to Premier Oil
(CercleFinance.com) - Premier Oil said that it has signed an agreement with BP for the acquisition of BP's interests in the Andrew Area and its Shearwater assets on the basis of the amended terms announced last month.
As announced in June, Premier will pay BP 210 million dollars upon completion of the deal, which the independent oil firm plans to fund via a capital increase.
In addition, up to another estimated 115 million dollars would become payable by Premier to BP, based on higher future oil and gas prices, to be funded from the revenues of the acquired assets.
BP said it will retain 100% of the existing Shearwater abandonment costs and 50% of the existing Andrew Area abandonment costs, meaning that Premier will book an estimated 240 million dollars of abandonment obligations.
The deal is expected to be completed by the end of September.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
As announced in June, Premier will pay BP 210 million dollars upon completion of the deal, which the independent oil firm plans to fund via a capital increase.
In addition, up to another estimated 115 million dollars would become payable by Premier to BP, based on higher future oil and gas prices, to be funded from the revenues of the acquired assets.
BP said it will retain 100% of the existing Shearwater abandonment costs and 50% of the existing Andrew Area abandonment costs, meaning that Premier will book an estimated 240 million dollars of abandonment obligations.
The deal is expected to be completed by the end of September.
Copyright (c) 2020 CercleFinance.com. All rights reserved.