BP plc (BP - Free Report) has recently entered into an accord with Premier Oil to divest stakes in some of its North Sea assets. The deal, valued at $625 million, is likely to be closed by the end of the third quarter of 2020.
The to-be-divested assets comprise the British energy giant’s stakes in the Andrew area in the central U.K. North Sea. This includes the Andrew platform and controlling stakes in five fields — Andrew, Arundel, Cyrus, Farragon and Kinnoull. Notably, the Andrew platform is being utilized by the five fields to produce oil equivalent volumes.
The other assets to be sold include the 27.5% stake of BP in the Shearwater oil field, being operated by Royal Dutch Shell plc (RDS.A - Free Report) in the British North Sea.
Notably, the recent deal reflects BP’s move to reshape its portfolio of North Sea assets as part of its $10-billion asset divestment plan by 2020-end. With the divestments of the matured fields, the integrated energy player will focus on more profitable resources, which comprise the Clair and Quad 204.
In the giant Clair oil field, situated in the west of Shetland, BP increased its stakes to 45.1% from 28.6% in December 2018. The second phase of the development of the field has targeted peak crude oil production of 120,000 barrels every day. Moreover, first oil was produced from the Quad 204 project — the other profitable development BP has been focusing on — in May 2017.
Investors should know that BP is not the only major energy firm divesting its North Sea assets. Other energy giants that have sold matured resources in the North Sea include Chevron Corporation (CVX - Free Report) , ConocoPhillips (COP - Free Report) and Royal Dutch Shell.
Headquartered in London, the United Kingdom, BP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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