Perenco to Acquire Southern Gas Assets in UK North Sea from BP for $400 Million - Expand its Operations in North Sea Region by Acquiring Matured Assets - Deal analysi form GlobalData

Perenco to Acquire Southern Gas Assets in UK North Sea from BP for $400 Million - Expand its Operations in North Sea Region by Acquiring Matured Assets - Deal analysi form GlobalData

Summary

Perenco UK Ltd (Perenco) agreed to acquire Southern Gas Assets (SGA) in the UK North Sea, from BP p.l.c (BP) for a purchase consideration of $400m in cash. The SGA assets include the Cleeton stream fields (including Wollaston, Whittle, Ravenspurn North, and Ravenspurn South), the West Sole stream fields (including West Sole, Hyde, Hoton, Newsham), the Amethyst field, Dimlington terminal and Hessle office. Current net BP production from the SGA assets is approximately 25,000 barrels of oil equivalent a day (boed).

Under the terms of the agreement, Perenco made an initial payment of $100m in cash and will pay the remaining $300m on completion of the transaction. Perenco also agreed to pay another $10m in the future contingent on the prevailing gas prices.

The acquisition will enable Perenco to strengthen its position in the UK North Sea. The transaction is expected to be completed by the end of 2012, subject to a number of third party and regulatory approvals.

The transaction implies a deal value of $16,000 per boe of daily production.

Scope

• Rationale behind Perenco acquiring SGAs from BP
• Stratigic benefits for the companies involved in the transaction
• Geography covered - UK

Reasons to buy

• Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Perenco and BP . Rationale behind selling SGAs by BP to Perenco
• Plan to acquire assets and to capitalise opportunites taking place in the E&P market
• Identify the reason behind Perenco's plan to acquire SGAs from BP