Zennor Petroleum Ltd. said Sept. 17 that its wholly owned subsidiary, Zennor North Sea Ltd. has entered into a sale and purchase agreement with Mitsui E&P UK Ltd. in respect of its interests in U.K. Continental Shelf Licenses P.213, Block 16/26a, Area B and P.345 Block 16/27b Area B which represent an 8.97% working interest in the Britannia Field.
Completion of the transaction is subject to customary regulatory and partner consents.
The acquisition of the Britannia Field interest is strategic for Zennor given its 100% operated working interest in the nearby Finlaggan Field. Finlaggan is scheduled to be developed as a subsea tieback to the Britannia platform. As notified in the operations update dated July 10, 2018, Zennor is currently drilling two wells as part of the Finlaggan Field development.
The acquisition also fits with the recently announced 30th Offshore Licensing Round awards where Zennor was successful with several 100% operated awards in and around the Finlaggan and Britannia Fields. These awards include the Leverett Discovery in Block 21/03d, which may form a future potential tieback to the Finlaggan subsea infrastructure.
The effective date for the transaction, which doubles Zennor’s net production to circa 5,000 barrels of oil equivalent per day is January 1, 2018. As part of the transaction agreement, MEPUK will retain the majority of the decommissioning liability up to an agreed cap with Zennor being responsible for the balance.
Recommended Reading
What's Affecting Oil Prices This Week? (Jan. 29, 2024)
2024-01-29 - For the upcoming week, Stratas Advisors forecast that increase in oil prices will be moderated likely due to the U.S. being cautious in response to the recent attack on U.S. troops.
Freeport LNG Down One Train After Texas Freeze
2024-01-29 - Freeport LNG’s 15 mtpa three-train export facility on the Texas Gulf Coast will be without its Train 3 for at least one month, due to an electrical issue during the recent Texas freeze.
Tellurian Head Counters Rumors, Says Company is Focused on ‘Commercial Matters’
2024-01-29 - LNG development firm Tellurian is disputing rumors that the company is looking to sell following its hire of financial advisory firm Lazard.
Exxon’s Payara Hits 220,000 bbl/d Ceiling in Just Three Months
2024-02-05 - ExxonMobil Corp.’s third development offshore Guyana in the Stabroek Block — the Payara project— reached its nameplate production capacity of 220,000 bbl/d in January 2024, less than three months after commencing production and ahead of schedule.
Venture Global, Grain LNG Ink Deal to Provide LNG to UK
2024-02-05 - Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum of LNG storage and regasification capacity at the Isle of Grain LNG terminal.