Premier Oil scraps £152million Dana Tolmount deal

Tony Durrant, Premier Oil chief executive officer

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PREMIER Oil has said it is not “pursuing” a $191million (£152m) deal to acquire an additional 25% stake in the Tolmount project from Dana Petroleum.

The firm announced plans to buy the stake from its 50-50 partner in Tolmount, based in the Southern North Sea, at the start of the year.

However, last month Premier Oil said it “will not proceed on the terms originally envisaged” as it renegotiated a separate deal for BP assets in the North Sea and today said the “Escrow Agreement” has been terminated.

It said: “Premier notes today that it will not be pursuing the purchase of the additional 25 per cent interest in Tolmount from Dana Petroleum.”

The announcement follows a long-running dispute with its main creditors, Asia Research and Capital Management (ARCM), on Premier’s deal to acquire BP’s Andrew Area assets and stake in the Shearwater Hub amid its rising debt levels.

Premier said it is “pleased to announce” that deal has now been approved by creditors “under the amended terms”.

The BP deal was originally worth £475m but new terms substantially reduced the cash payable upon completion and deferred some other payments until commodity prices improve.

Dana Petroleum refused to comment when contacted by ABN.

 

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