Premier Oil has sold its Norwegian business, Premier Oil Norge, to Det norske for $120million.
The firm confirmed it would funnel the funds back into repaying its debt.
Faltering oil prices has forced the firm to cut its spending by 25% this year.
A company spokesperson said the sell-off “represents another step in Premier’s previously stated programme of portfolio management”.
Chief executive Tony Durrant added: “We are pleased to have reached agreement to sell our Norwegian business to Det norske, one of our long term partners in Norway.
“Our team in Norway has done an excellent job in bringing the Vette project close to a sanction decision in a low oil price environment. The transaction will realise immediate value from the project as part of our strategy of active management of our portfolio.”
The deal, which is still subject to government approval, is expected to be completed by year-end.