Premier Oil has agreed the potential multi-million pound sale of its stake in the largest onshore oilfield in western Europe.
The UK operator has a 33.8% interest in Wytch Farm in Dorset, England.
Premier has released a statement confirming that it has agreed a deal with a third party for disposal of the stake.
The proposed consideration is $200 million and Premier will also expect to release letters of credit, amounting to approximately $75 million, held in connection with future field abandonment liabilities.
The transaction is subject to signature of a sale and purchase agreement and to lender approval, a process which is under way.
Given the size of the consideration, the transaction is likely to require shareholder consent.
Premier said a further announcement will be made “when appropriate”.