North Sea oil company Iona Energy said today it had agreed the sale of a non-core asset, its 2.5% stake in the Esmond Transportation System (ETS) to French energy giant Engie for £1.3million.
Iona’s interest in ETS, which terminates onshore at Bacton in Norfolk, includes an associated share of the Eagles pipeline in the southern North sea.
The completion and timing of the deal remains “subject to obtaining all normal and necessary third party consents and regulatory approvals”, said Iona, which expects to complete the sale before the end of September.
Earlier this week, Canadian-owned Iona said a new bond debt refinancing plan had “significant support” from investors.
Bondholders representing 64% of the outstanding debt have backed the proposals.
Iona said this meant it can fully fund its plans for the Orlando field north-east of Shetland.
First oil from Orlando, with Iona targeting gross production of 11,000 barrels a day, is expected before the end of 2016.