Swapping in the sea
22 May 2002
BG Group and BP have signed an agreement involving the exchange of interests in several assets in the North Sea. The package includes producing fields, pre-sanction assets and exploration acreage.
Under the arrangement, BG will acquire BP's entire interest in Elgin/Franklin (1.76% plus associated infrastructure), Neptune (18%), Atlantic (75%), plus a 14.7% interest in block 29/4d (Glenelg discovery). In addition, BP will get exploration blocks 14/26b and 14/27a (both 41.67%), adjacent to Atlantic, and 29/4f (14.7%), near Glenelg.
In exchange, BG will transfer to BP its entire interest in the Brae Area (7% average equity) and in exploration block 49/30a-N (50%), and will pay £21.5 million in cash.
The agreement helps consolidate BG's asset base, and is believed by the company to be one of the largest asset exchanges in the recent history of the North Sea.
The exchange is subject to the usual DTI and co-venturer approvals, and completion is expected in the summer.
