BP sells North Sea assets to Premier Oil

BP is selling its North Sea interests in the Andrew area and its non-operating interests in the Shearwater field to Premier Oil.

BP will sell the Andrew platform, along with its stake in the five fields that produce through the platform: Andrew (62.75%), Arundel (100%), Cyrus (100%), Farragon (50%), and Kinnoull (77.06%). It is also selling its 27.5% stake in the Shell-operated Shearwater field. The total cost of the sale to Premier Oil is US$625m.

The Andrew platform is around 225 km northeast of Aberdeen and produced an average of 25,000 to 30,000 boe/d in 2019. The Shearwater region is located around 225 km east of Aberdeen and can produce 14,000 boe/d.

Ariel Flores, BP North Sea Regional President, said: "BP has been reshaping its portfolio in the North Sea to focus on core growth areas, including the Clair, Quad 204 and ETAP hubs. We're adding advantaged production to our hubs through the Alligin, Vorlich and Seagull tieback projects.” Advantaged oil is BP’s terminology for a project with a short development time and a low development cost.

"As a result of this focus, we have also now decided to divest our Andrew and Shearwater interests, believing them to be a better strategic fit for another owner,” said Flores. “We are confident that Premier Oil, already a significant operator in the North Sea, is the right owner of these assets as they seek to maximise their value and extend their life."

The sale comes as part of BP’s plan to divest US$10bn in assets by the end of 2020. The sale is expected to complete in the third quarter of 2020.