Plans to develop the Blythe and Skipper North Sea projects have been boosted after it emerged a private equity firm is to buy out one of the project partners.
Alpha Petroleum is looking to buy ATP Oil and Gas’ UK arm, which has a 50% stake in the fields, after its US parent company filed for bankruptcy protection last year.
The Blythe gas field, discovered in the Southern North Sea in 1996, is thought to contain around 6million barrels of oil equivalent, and developing the field is key to funding the 26million barrel Skipper oil field, around 140km south-east of Shetland.
A hearing over the purchase of ATP’s UK arm is scheduled for December 19, with prospective buyers Alpha having been backed in their bid to buy the firm by field partners Independent Oil and gas.
“This is a significant event for IOG because once the sale of ATP UK has concluded IOG will be able to proceed with the development and appraisal programmes for Blythe and Skipper,” said Independent chief executive Mark Routh.
“We have met Alpha Petroleum and have high regard for both them and the ATP UK management team and subject to the relevant approvals being obtained for the sale of ATP UK, we look forward to working with them and progressing our joint assets as quickly as possible.”
Any final deal would need to be approved by the US bankruptcy court, but would enable development of the field to continue. The companies had originally targeted first gas from Blythe by 2015, and first oil from Skipper by mid-2017.
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