Oil and gas independent Faroe Petroleum has completed a $75.6 million deal to take a controlling interest in two North Sea fields.
The firm yesterday said it had finalised its purchase from Tullow Oil of stakes in both the Schooner and Ketch fields in the southern North Sea.
The farm-down leaves Tullow with 40% interest in both fields after relinquishing a 53.1% operated interest in Schooner and 60% operated interest in Ketch.
Faroe said the remaining proved and probable reserves at the two fields were in the order of 5.9m barrels of oil equivalent.
It expected average production for the first six months was around 3,700 barrels.
“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,” Faroe CEO Graham Stewart said.
“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.”
Tullow said the partial offloading of its stake in the two fields was in line with its strategy of reducing its assets in the region. Last month Tullow completed the $81.1m sale of Netherlands-based assets to Mercuria Energy Group.
“The group continues to market its remaining Southern North Sea gas assets in the UK,” the company said yesterday.
“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.”
Tullow Oil shares fell 8% or 45p at 526p.