Premier Oil has managed to renegotiate with BP concerning their North Sea oilfields acquisition deal for September 30, according to a press release.

The renegotiation aims to adjust the structure and phasing of payments to reflect the developments in global commodity markets. This includes reducing cash payable at completion to $210 million and slashing abandonment obligations from around c$600 million to around c$240 million.  

Tony Durrant, CEO of Premier Oil, commented, “We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the Company. The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the Company to continue discussions regarding proposed amendments to the Group’s existing credit facilities.”

BP agreed terms in January 2020 to sell its interests in the Andrew area in the central UK North Sea and its non-operating interest in the Shearwater field for a combined total of $625 million. The sale was part BP’s planned programme of $10 billion divestments by the end of 2020.