Tullow Oil sells stakes in two North Sea fieldsWednesday 30 April 2014 08.04
Oil and gas explorer Tullow Oil has sold majority stakes in two UK North Sea gas assets to Faroe Petroleum for $75.6m and said it was looking for buyers of other North Sea assets.
The decision to sell its Schooner and Ketch North Sea gas fields nearly 10 years after acquiring them from Shell and Exxon Mobil underlines Tullow Oil's strategy to focus on oil producing assets in new markets.
Faroe Petroleum will take over operatorship of the Schooner and Ketch fields, of which it will own 53.1% and 60% respectively.
"We have a clear strategy of constant and active portfolio management and have focused our business on conventional light oil," said Tullow Oil's chief executive Aidan Heavey.
The company, which halted its Mauritania drilling programme last week, has suffered a string of disappointing exploration results and is under pressure to restore its reputation.
Its flagship Jubilee field offshore Ghana is one of the projects Tullow Oil is counting on to turn its fortunes. The field is on track to produce an average 100,000 barrels of oil per day this year, despite issues with an onshore processing facility.
The company also said today that it is maintaining its 2014 production target at between 79,000 and 85,000 barrels of oil equivalent per day.