Premier Oil to exit from UK’s Wytch Farm oil field
The London-based oil and gas explorer said that it expects to release letters of credit totaling to about $75m relating to future field abandonment liabilities.
As of 30 June, the production from the Wytch Farm corresponding to Premier Oil’s 33.8% stake was 5kboepd.
Premier Oil said that it has to enter into an sale and purchase agreement with the buyer for the transaction, which also requires an approval from the lender.
The transaction would also need consent from its shareholders, stated Premier Oil which only last month had acquired an additional stake of 3.71% in the UK oil field for £11.7m from Maersk Oil North Sea UK.
As of July 2017, Perenco is the majority owner in the Wytch Farm oil field with a stake of 53.8%. Ithaca Energy holds 7.4% while Repsol Sinopec has a stake of 5%.
Maersk Oil North Sea UK had quit the field following its transaction with Premier Oil which remains to be the second largest owner until the completion of its deal with the unnamed buyer.
Contained in licences PL089 and P534 in Dorset County, the Wytch Farm is considered as the Europe's largest onshore oilfield. Located in a highly environmentally sensitive area, the oil field is has been operated by Perenco UK since 2011.
Oil and gas major BP was the previous operator of the Wytch Farm before divesting its 67.81% controlling stake in the oil field along with other assets to Perenco UK in a $610m deal in May 2011. ■