6 August 2015
- From the section BBC Scotland business
Shell and Esso have agreed to sell off their stakes in a cluster of North Sea oil and gas fields to a pair of Malaysian firms for a total of $105m.
Under the deal, Ping Petroleum Ltd and Hibiscus Petroleum Berhad will each acquire 50% of Shell and Esso’s interests in the Anasuria cluster.
It will give them a 100% stake in the Teal, Teal South and Guillemot A fields and 38.65% in the Cook field.
The deal includes the Anasuria Floating Production Storage and Offloading unit.
The Anasuria cluster is located about 175km east of Aberdeen in the UK Central North Sea.
Hibiscus said the acquisition was subject to regulatory approval, and consent from third parties.
The agreement was signed by Shell UK Ltd and Shell EP Offshore Ventures Ltd as well as Esso Exploration and Production UK Ltd, which is part of Exxon Mobil.
In a statement, Ping and Hibiscus said the acquisition “reflected the support provided by the UK government to encourage smaller independents to invest and revive the North Sea basin”.
Hibiscus managing director Ken Pereira said: “This acquisition will complete our company’s strategy of acquiring a balanced portfolio of assets which includes exploration, development and producing assets within five years of listing our company.
“We will be able to cut our teeth as an operator in conjunction with Ping in one of the world’s foremost oil and gas production basins.
“The Anasuria Cluster has development potential for a company of the size of Hibiscus and provides us with an excellent foundation upon which we can build a significant North Sea presence.”
Ping is an upstream company focusing on shallow water offshore production and development in south east Asia.
Hibiscus owns exploration and development assets in the Middle East, Norway and Australia.
A Shell spokeswoman said: “Shell can confirm that it has signed a sales and purchase agreement with Ping Petroleum and Hibiscus Petroleum, for the sale of its interests in the Anasuria Cluster.
“The deal is subject to partner and regulatory approvals, with completion expected in quarter four of 2015.
“This deal fits with Shell’s strategy to deliver strong shareholder value across our assets.
“The Anasuria cluster has entered a phase where it offers greater value to other companies than it does for Shell.”
Earlier this week BP announced plans to invest about £670m to extend the life of its North Sea assets.
BP hopes to secure the future of its Eastern Trough Area Project (ETAP) fields until at least 2030.