Asset A&D

Tailwind Energy Acquires BP's 27.5% Interest in the Shearwater Field

By Isha Makkar
May 24, 2021
2 minutes read
Offshore Rig

Privately-held Tailwind Energy Ltd. has entered into an agreement with multinational integrated oil & gas company BP Plc to acquire its 27.5% working interest in the Shearwater field in the UK Central North Sea for an undisclosed consideration. Upon completion, Exxon Mobil Corp. will hold a 44.5% interest in the field, with Royal Dutch Shell Plc holding a 28% operated interest, and Tailwind Energy holding the remaining 27.5% interest

In January 2020, BP entered into an agreement with Premier Oil Plc to divest its interest in the Andrew and Shearwater area assets in the UK Central North Sea for a total cash consideration of US$625 million. However, the transaction was aborted in October 2020 when Premier Oil entered into an agreement to merge with Chrysaor Holdings Ltd., and subsequently decided not to proceed with the proposed refinancing of its existing credit facilities or the acquisition of UK Central North Sea assets from BP (which were to be financed from the proceeds of the proposed refinancing).

The Shearwater field lies within license P188 (Block 22/30b) in the Central Graben area of the UK Central North Sea, approximately 225 km east of Aberdeen. Situated in water depth of approximately 90 m, the field was discovered in 1998 and commissioned in 2000. Shearwater is a deep gas-condensate accumulation in the HPHT region of the UKCS, and is one of the biggest producing blocks in the North Sea. The gas export capacity of the Shearwater platform is expected to be approximately 320 million cubic feet per day (MMcf/d), with an oil export capacity of up to 99 thousand barrels per day (Mbbls/d), from two pumps.

London-based Tailwind Energy is backed by an equity investment from the Mercuria Energy Group. The company is focused on the acquisition and optimization of producing and near-term development assets in the UK North Sea.

The transaction is subject to customary closing conditions, including partner and regulatory approvals, with an effective date of January 1, 2021.

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