The Netherlands: Tullow to Bolster its North Sea Business with Acquisition of Nuon E&P
Tullow Oil plc (Tullow) announces that it has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million from the Vattenfall Group.
The acquisition of Nuon E&P will significantly enhance Tullow’s North Sea business adding a portfolio of 25 licences that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group’s North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.
The Nuon E&P assets are very complementary to the Group’s existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow’s existing exploration acreage in the area.
The Nuon E&P transaction has an effective date of 1 January 2011 and is expected to complete by July 2011.
Paul McDade, Tullow’s Chief Operating Officer, commented today:
“This acquisition is a natural fit with Tullow’s Southern North Sea portfolio and materially enhances our potential for growth in the Dutch sector, an area with significant opportunities and a stable tax regime. Whilst the scale of the acquisition is modest from a Group perspective, it significantly enhances the value generation potential of our North Sea business.”
Source: Tullow, May 24, 2011;