Tullow divesting North Sea gas assets to focus on oil

Tullow Oil plc has entered into an agreement to sell its 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 €62.7 million (US$81.1 million).

The transaction involves the sale of a subsidiary, Tullow Netherlands B.V., which will, at the time of completion, hold all Tullow Oil L12/L15 and Q4 and Q5 interests. The transaction has an effective date of 1 January 2014 and completion, expected during early 2015, is conditional upon ministerial consent of the intra-group transfer of the L12/L15 and Q block non-operated licence interests to Tullow Netherlands B.V.

The Tullow L12/L15 and Q block portfolio comprises a suite of seven licence interests and six developed fields producing 1,500 boepd net to Tullow. Tullow’s guidance for North Sea production will be revised appropriately when this sale completes.

Aidan Heavey, Chief Executive of Tullow Oil plc, commented today,  “The sale of the Tullow’s interests in Blocks L & Q is a further step towards the Group’s planned divestment of our North Sea gas assets in order to focus our business on conventional light oil. The previously announced agreement to sell part of our interests in the UK Schooner and Ketch unit to Faroe Petroleum for a total consideration of US$75.6 million is on track to complete before the end of the year, and the divestment of our remaining UK & Dutch gas assets is progressing well.”