Premier Oil has announced that the amended terms for the acquisition of the Andrew Area and Shearwater assets – the BP Acquisitions – have been agreed to in principle. The cash payable at completion reduced to USD 210 million. Estimated revised abandonment obligations are reduced to approximately 240 million from roughly USD 600 million (both pre-tax).
Principal terms being discussed with a subset of Premier’s creditors to waive the Group’s financial covenants through to 30 September and to provide continued access to its revolving credit facilities (Stable Platform Agreement); once agreed and finalised, the terms will be put to the wider creditor group for approval.
Premier Oil CEO, Tony Durrant, comments, “We are pleased to have agreed revised terms with BP for the proposed acquisition of the Andrew Area and Shearwater assets, which are materially value accretive for the company. The Stable Platform Agreement, once agreed with and approved by lenders, will provide a basis for the company to continue discussions regarding proposed amendments to the group’s existing credit facilities.”