Chrysaor-Premier Tie-up to be Called Harbour Energy
The company formed from the merger of North Sea producers Chrysaor and Premier Oil will be named Harbour Energy after the former's largest shareholder, Premier said on December 16.
Harbour, a vehicle formed by EIG Global Energy Partners, has backed several expansions by Chrysaor over the years, including its $3bn acquisition of North Sea assets from Shell in 2017 and a similarly-sized deal for ConocoPhillips' operations in the area two years later. Harbour is expected to have a 39% stake in the combined group once the deal is completed, which should take place in the first quarter of 2021.
Premier also noted that its CEO Tony Durrant had stepped down today, to be replaced by interim boss Richard Rose until the transaction is closed. The company added that the shareholder circular and prospectus for the deal would be published later today as well, after which Premier will immediately launch its restructuring plan.
Under the transaction, Premier's $2.7bn of debt will be settled, with creditors receiving a $1.2bn cash payment. The company will hold a general meeting of its shareholders on January 12 to approve the deal. Blair Thomas, EIG's current CEO, will serve as chairman of the combined group, while current Harbour boss Linda Cook will be its CEO and Chrysaor CEO Phil Kirk will be its president. Its board will also include Simon Henry, Anne Stevens, Anne Marie Cannon and G. Steven Farris.
The tie-up will create the UK's biggest independent oil and gas producer, with over 250,000 barrels of oil equivalent/day of output.