Norway's Det Norske has bought UK-based independent explorer Premier Oil's Norwegian assets for US$120 million, just a month after agreeing to buy Svenksa Petroleum for $75 million.
The Premier Oil assets include the Vette development, for which Premier Oil has been working on a floating production facility solution, as well as the adjacent Mackerel and Herring discoveries, and a non-operated interest in the Frøy.
The deal also includes seven exploration licenses in the Norwegian sector of the North Sea. Premier has 26 employees in Norway. The deal is expected to complete by the end of the year.
"Following the recent closing of the Svenska transaction, the acquisition of Premier is another bolt-on acquisition that further underlines our firm belief in and commitment to the Norwegian Continental Shelf," comments Karl Johnny Hersvik, CEO of Det norske.
At the time of the Skenska deal, Hersvik said: "This transaction states our ambition of growth on the Norwegian Continental Shelf, and is a solid contribution to building Det norske as an independent E&P company.
Svenska holds 13 licenses in Norway, including the Krafla/Askja (25%), Garantiana (20%), Frigg Gamma Delta (40%) and Fulla/Lille-Frigg (25%) discoveries in the North Sea. In addition, the company holds four exploration licenses in the Norwegian Sea.
Potential investment decisions on the Krafla/Askja and Garantiana discoveries are expected around 2018.Tony Durrant, Premier's CEO, said: “Our team in Norway has done an excellent job in bringing the Vette project close to a sanction decision in a low oil price environment. The transaction will realize immediate value from the project as part of our strategy of active management of our portfolio.”
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