Premier Oil sells Norwegian business to Det norske for $120 million

LONDON -- Premier Oil has agreed to sell Premier Oil Norge AS, which comprises all of the company's Norwegian assets, to Det norske oljeselskap for a cash consideration of $120 million.

The proceeds will be used to pay down the company’s debt and represents another step in Premier’s previously stated program of portfolio management. The transaction is subject to the receipt of government approval and is expected to complete by year-end.

Premier’s Norwegian assets comprise the operated Vette development and adjacent Mackerel and Herring discoveries (50% interest), a non-operated interest in the Frøy field (50% interest) and seven exploration licences in the North Sea. Premier has 26 employees in Norway.

“We are pleased to have reached agreement to sell our Norwegian business to Det norske, one of our long-term partners in Norway," Tony Durrant, CEO of Premier Oil, said. "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 realize immediate value from the project as part of our strategy of active management of our portfolio.”

“Following the recent closing of the Svenska transaction, the acquisition of Premier is another bolt-on acquisition that further underlines our firm belief in and commitment to the Norwegian Continental Shelf,” Karl Johnny Hersvik, CEO of Det norske, said.