Offshore oil and gas production company, Premier Oil, has sold its Norwegian offshore business in its entirety to rival Det Norske.
The deal worth US$120 million, includes all of Premier Oil’s Norwegian offshore assets, including Frøy, Vette, Mackerel and Mandel High, and effectively sees Premier exit the Norwegian offshore oil and gas market.
In a statement, London based Premier Oil said the move would be inline with their portfolio management program, which they are currently undergoing, and would allow them to pay down debts.
The cash deal signed Monday, will now have to pass regulators and gain government approval, however, it widely expected to be complete by the close of 2015.
Premier Oil, Chief Executive, Tony Durrant, said: “We are pleased to have reached agreement to sell our Norwegian business to Det norske, one of our long term partners in Norway.”
“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 realise immediate value from the project as part of our strategy of active management of our portfolio.”