Premier Oil Eyes Bid for Chevron’s North Sea Assets

Premier Oil Plc is considering a bid for a package of North Sea oil and gas assets put on the block by Chevron Corporation which is worth about US$2 billion, according to people familiar with the matter.

The first round bids are due before the end of the month, the people said, asking not to be identified as the matter is private.

Premier, which has a market value of about £578 million (US$733 million), may tap a partner or buy only the operating rights for the assets, the people said. No final decisions have been taken and the independent energy firm may decide against a bid, they said.

Premier is among the independent explorers seeking to expand in the U.K. North Sea as some of the largest US oil majors seek to exit the region to focus on other opportunities.

Assets which have been put on the block recently include oil and gas fields from ConocoPhillips, which has entered into exclusive talks to sell a package valued at as much as US$3 billion to British billionaire Jim Ratcliffe’s Ineos Group.

Chevron has decided to market all its UK central North Sea assets, including the Alba, Alder, Captain and Erskine producing fields as well as the Britannia, Elgin/Franklin and Jade non-operated projects, a spokeswoman said last month.

Chrysaor Holdings Ltd and Neptune Oil & Gas Ltd are among suitors weighing bids, people familiar with the matter said at that time.

Source: Rigzone