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    Perenco Eyes UK Upstream Asset Sale

Summary

But the French company remains committed to the UK generally.

by: William Powell

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Perenco Eyes UK Upstream Asset Sale

French Perenco is considering the sale of a package of producing gas assets in the UK southern gas basin which it bought from BP in March 2012. It has reportedly engaged Tudor, Pickering & Holt to advise it. It has had a number of expressions of interest and is looking at where to invest its money instead, although it might choose not to sell.

A company spokesman told NGW in a February 12 statement: “As part of an assessment of its future global investment priorities, Perenco is reviewing strategic options for the southern North Sea gas business, which may or may not lead to any divestments or new partnerships. At the moment it is business as usual.”

It remains committed to the UK: for example it is keeping the Wytch Farm onshore oil production asset in Dorset; and has a plan to spend £160mn ($205mn) this year. It joins a few other sellers, including the US majors Chevron and ConocoPhillips who have also both reviewed their UK upstream portfolio.

Among its other assets are a stake in floating LNG offshore Cameroon and upstream acreage in Trinidad & Tobago, Mexico, Gabon and Brazil. It operates fields with gross production of 465,000 barrels of oil equivalent/day. Its UK production is 60,000 boe/d, including Wytch Farm.