Premier Oil has taken full ownership of the Solan field.
The UK-listed oil company acquired the 40% stake in the field which it did not already own.
It purchased Chrysador’s interest in the Solan field, West of Shetland, for nil upfront consideration.
Premier Oil will , in return, make a payment of up to $3million a year, as well as royalty payments totalling up to $100million after allowing for the repayment to Premier of the outstanding loan of $530million.
The company also announced it has entered into an agreement with FlowStream Commodities, whereby FlowStream will make a $100million upfront payment to Premier in return for the proceeds from 15% of production from the Solan field.
Solan is expected to produce 40million barrels of oil, with an estimated initial rate of about 24,000 barrels a day.
Premier bought its stake for an initial £6million in 2011 and was appointed development operator in January 2012.
Solan was located by Amerada Hess in the 1990s, but was not produced because it was deemed unviable at the time.
