India’s Aban Offshore has entered into a conditional sale and purchase agreement to acquire a 100% interest in the United Kingdom Continental Shelf (UKCS) production license P198.
Aban said on Tuesday that the license comprises of a 100% interest in Block 15/13a and Block 15/13b in the UK North Sea.
According to the company, it will acquire the license via its wholly-owned step-down subsidiary Caldera Petroleum (UK) Limited for a non-cash consideration of $75 million.
The consideration will be set-off against amounts due from certain customers to another wholly-owned step-down subsidiary of the company for drilling services provided.
Aban also entered into a conditional sale and purchase agreement with Hibiscus Petroleum’s indirect wholly-owned subsidiary Anasuria Hibiscus UK Limited (AHUL) to sell a 50% interest in the license and blocks immediately upon completion of the acquisition, for a cash consideration of $37.5 million.
Both the acquisition and sale are subject to closing conditions including the written consent by the UK Oil and Gas Authority.
Upon completion of the transactions, the company and AHUL will each own 50% interest in the license, while Anasuria will be the operator.
In a separate announcement, Hibiscus Petroleum said the acquisition would be completed on or before October 16, 2018.
Hibiscus Petroleum’s Managing Director, Kenneth Pereira, added: “We are excited by this acquisition. It is a key component of our 2021 mission to secure 100 million barrels of proved and probable reserves. Furthermore, the blocks are located in an area that is close to other discoveries and existing infrastructure. We look forward to working closely with the UK regulators as well as with our new partner to optimally monetise the resources within these blocks and deliver shareholder value.”
The license is located offshore the United Kingdom sector of the North Sea, some 250 kilometers northeast of Aberdeen.
Block 15/13a within the license consists of a significant oil bearing discovered field, whilst Block 15/13b which lies northeast of Block 15/13a consists of a smaller discovered field.
Based on an independent report by AGR TRACS International, the gross contingent oil resources in the blocks is estimated to be 60 million barrels of oil.
According to data provided by the OGA, the two blocks in question are currently 100% owned by the Iranian Oil Company (UK) Limited.
Offshore Energy Today Staff