Tullow to buy Spring Energy, strengthen presence offshore Norway

Offshore staff

LONDON – Tullow Oil has agreed to acquire Norwegian independent Spring Energy Norway for $372.3 million, as part of a plan to refocus its northwest Europe operations. Spring is owned by private equity company HitecVision and other private shareholders.

Spring has interests in 28 offshore licenses across the North Sea, the Norwegian Sea, and the Barents Sea. Its track record includes six commercial discoveries out of 12 wells drilled since 2008.

From 2013-14, the company plans to drill up to 16 exploration wells of which three will be operated. Tullow assesses prospective resources throughout the company’s acreage at more than 230 MMboe, with proven reserves and resources of 24 MMboe.

Spring’s 37-strong team will be integrated into Tullow Norge. Roar Tessem has been named managing director, responsible for managing Tullow’s assets offshore Norway and Greenland.

Tullow pre-qualified as an operator on the Norwegian continental shelf earlier this year, and submitted bids for Norway’s recently closed 22nd license round.

Tullow intends to exit its exploration, development, and production interests in the UK and Dutch southern North Sea by the end of next year. These include the Schooner/Ketch complex. The gas assets currently produce about 18,000 boe/d.

12/11/2012

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