Premier Oil sells stake in Western Europe’s biggest onshore oilfield
Premier Oil, the heavily indebted UK independent oil producer, is selling is near 34 per cent stake in the biggest onshore oilfield in Western Europe.
The company said it had agreed a deal with an unnamed third party to offload its entire 33.8 per cent stake in Wytch Farm in Dorset, in the south of England, for $200m.
It expects to issue letters of credit — effectively promising future payment — of $75m to cover future decommissioning liabilities.
Premier Oil, which has been shedding assets to help pay down its $2.7bn of debt, said the transaction would likely require shareholder consent.
Wytch Farm has been operated since 2011 by Perenco.