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Tullow Oil plc (“Tullow” or “the Group”) announces today that its subsidiary Tullow Oil SK Limited has completed the sale of 53.1% of its Schooner unit interest and 60% of its Ketch asset in the UK Southern North Sea to Faroe Petroleum (U.K.) Limited (“Faroe”). Operatorship of Schooner and Ketch will now transfer to Faroe.
The Group continues to market its remaining Southern North Sea gas assets in the UK. In the Netherlands an agreement to sell operated and non‑operated L12/L15 block interests and non‑operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited, for a consideration of $81.1 million, was announced in September. In July, the Group also announced the sale of its interests in the Brage field in Norway to Wintershall for a cash consideration of 45 million NOK ($7.5m).
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.
Schooner and Ketch Licences and production
| Tullow 1H 2014 net average WI production | Tullow pre-farm down equity | Tullow post farm down equity | 2014 production impact | |
|---|---|---|---|---|
| Schooner Unit | 2.4 kboepd | 93.1% | 40% | 0.3 kboepd |
| Ketch | 3.9 kboepd | 100% | 40% | 0.5 kboepd |
Summary
30 April 2014 – Tullow Oil SK Limited entered into an agreement to sell 53.1% of its Schooner unit interest (currently 93.1%) and 60% of its Ketch asset (currently 100%) in the UK Southern North Sea to Faroe Petroleum (U.K.) Limited. The total consideration is the equivalent of US$75.6 million plus a royalty on future Schooner developments, subject to the terms of the sale and purchase agreement. Of the US$75.6 million total consideration, US$58.8 million will be paid on completion of the sale with the balance payable on the achievement of cumulative production milestones. The purchase has an effective date of 1 January 2014.