Tullow Oil plc announces that its subsidiary Tullow Oil SK Limited has entered into an agreement to sell 53.1% of its Schooner unit interest (currently 93.1%) and 60% of its Ketch asset (currently owned 100%) in the UK Southern North Sea to Faroe Petroleum (U.K.) Limited ("Faroe").

The total consideration is the equivalent of US$75.6 million plus a royalty on future Schooner developments, subject to the terms of the sale and purchase agreement. Of the US$75.6 million total consideration, US$58.8 million will be paid on completion of the sale with the balance payable on the achievement of cumulative production milestones.

The purchase has an effective date of 1 January 2014 and is expected to complete by the end of the year at which point operatorship of Schooner and Ketch will transfer to Faroe.

Tags: Tullow Oil plc