Irish oil company Tullow Oil Plc bought two North Sea gas fields from Shell and ExxonMobil for 200 million pounds ($390 million), tapping a region now less favoured by oil majors as it bets on higher UK gas prices. Tullow said on Monday the purchase of the Schooner and Ketch fields will also help it regain a more even balance in production between its UK and African assets, following its take-over of Energy Africa earlier this year.
Chief Executive Aidan Heavey said that at around $7.40 per barrel of oil equivalent, the price Tullow had paid was "quite cheap", although he acknowledged the cost of extracting gas at the fields would rise in future, as supplies were depleted.
The deal is the latest in a series of sales that have seen the major oil companies shift their focus away from the North Sea to more promising areas for exploration. Analysts welcomed the purchase, saying it was in line with Tullow's strategy and that the assets fitted well with the company's existing North Sea gas interests.
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