Tullow Oil’s subsidiary, Tullow Exploration & Production B.V., has entered into an agreement to sell its operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited for a consideration of €62.7 million (US$81.1 million).
The transaction involves the sale of a subsidiary, Tullow Netherlands B.V., which will, at the time of completion, hold all Tullow Oil L12/L15 and Q4 and Q5 interests. The transaction has an effective date of 1 January 2014 and completion, expected during early 2015, is conditional upon ministerial consent of the intra-group transfer of the L12/L15 and Q block non-operated licence interests to Tullow Netherlands B.V.
The Tullow L12/L15 and Q block portfolio comprises a suite of seven licence interests and six developed fields producing 1,500 boepd net to Tullow. Tullow's guidance for North Sea production will be revised appropriately when this sale completes.