Independent exploration firm Faroe Petroleum has snapped up a 10% stake in BP’s East Foinaven field.
The $22.5million deal will also include the company taking a 0.5% interest in the West of Shetland pipeline from Marubeni Oil and Gas.
“We are very pleased to broaden our production base further through the acquisition of the East Foinaven interest, which boosts and diversifies our oil and gas production portfolio,” said chief executive Graham Stewart.
“East Foinaven is a good quality, long life producing oil field which provides significant upside potential in one of our core areas.
“The transaction is very tax efficient for Faroe Petroleum, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production base in order to fund the Company’s very active exploration programme.”
The field, discovered in August 1995, sits around 190km west of Shetland and is tied back to the main Foinaven well, with gas exported to through the West of Shetland pipeline to Sullom Voe.
The deal will give Faroe around an extra 400 barrels of oil equivalent per day, from a net availability to the company of 1.2million barrels.
Faroe added the company was expecting to start exploratory drilling at the Snilehorn well in Norway by the end of the quarter, with five more wells being drilled ahead of next year.
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