Oil big BP has agreed to scrupulously low cost the price of North Sea sources it’s far planning to promote to Premier Oil.
The 2 companies reached a deal in January which would maintain seen Premier pay $625m (494m) for BP’s pursuits in the Shearwater and Andrew fields.
Below original provisional terms drawn up following the streak in oil costs, the price has been cut to $210m (£166m).
A further $115m (£90m) will more than doubtless be payable to BP easiest if oil climbs above $55 a barrel. It for the time being stands at $41.
The original settlement ends a staunch dispute with Premier’s most piquant creditor, hedge fund Asia Compare and Capital Management (ARCM), which had antagonistic plans by the vitality firm to elongate its money owed and kind acquisitions.
Premier acknowledged it can per chance presumably well teach original shares to ARCM representing virtually 9% of the enlarged crew, the proceeds of which is able to be ancient to fund half of the proposed BP deal.
In the period in-between, Premier acknowledged it had made “staunch development” in agreeing the main terms of a “Real Platform Agreement” with a subset of creditors representing more than 40% of its debt amenities.
Once agreed and finalised, the terms will more than doubtless be build to the broader creditor crew for approval.
Premier chief govt Tony Durrant acknowledged: “We are pleased to maintain agreed revised terms with BP for the proposed acquisition of the Andrew Dwelling and Shearwater sources, which might perchance per chance presumably well be materially tag accretive for the company.
“The Real Platform Agreement, as soon as agreed with and authorized by lenders, will provide a basis for the company to continue discussions concerning proposed amendments to the crew’s existing credit amenities.”
Premier and BP acknowledged they intended to dwell the proposed acquisitions, self-discipline to debt and shareholder approvals, by 30 September.
BP has a 28% share in the Shell-operated Shearwater gasoline self-discipline which lies about 200km (125 miles) east of Aberdeen.
The BP-operated Andrew Dwelling is positioned 230km (140 miles) north east of Aberdeen.