Premier Oil sells Norwegian subsidiary to Det norske

Offshore staff

LONDON Premier has agreed to sell Premier Oil Norge AS, which comprises all its oil and gas assets offshore Norway, to Det norske oljeselskap ASA for a cash consideration of $120 million. The proceeds will be used to pay down Premier’s debt.

The company says it is another step in its previously stated program of portfolio management. The transaction is subject to the receipt of government approval and is expected to be completed by year-end.

CEO 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 realize immediate value from the project as part of our strategy of active management of our portfolio.”

Premier entered Norway in 2005, after being awarded five licenses through the APA Licensing Round held in the same year. It has interest in the Mandal High, Mackerel, Vette (formerly Bream), and Froy developments.

Det norske has made two acquisitions to enlarge its Norwegian portfolio in the last year: Svenska Petroleum and Marathon Oil Norge.

11/16/2015

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