Oil and gas company Tullow Oil has agreed to buy Shell UK's and Esso Exploration and Production UK's entire producing interests in the Schooner and Ketch gas fields in the North Sea.
The deal is worth £200m and will be financed through bank debt and internal resources.
Tullow says the agreement will strongly enhance its strategic position in the Southern North Sea, and in particular in the Caister-Murdoch System. The Schooner and Ketch fields have been in production since 1996 and 1999 respectively.
The gas from the fields is transported to the Theddlethorpe terminal via the Caister-Murdoch System infrastructure, in which Tullow has a 17% interest.
When the deal is completed, by July of next year, Tullow will start a three year development programme on the two fields, which will substantially increase production levels.
Tullow says the transaction transforms its UK gas business, further consolidates its position in the CMS core area and enables it to capitalise on its technical expertise.
Following on from the Energy Africa acquisition completed in late May, the Schooner and Ketch acquisition completes a transforming year for Tullow, during which the company has concluded over a billion dollars of transactions,' commented Aidan Heavey, Tullow's Chief Executive said.
Tullow Oil holds interests in over 90 licences in 16 countries. Its African operations include activities in Cameroon, Gabon, Senegal and Congo. It also operates in the North Sea, Pakistan, India and Romania.
