LONDON, June 20 -- BP PLC Wednesday completed the sale of the second of two packages of Thames Hewett gas assets and related infrastructure in the southern North Sea to Tullow Oil PLC.
The UK independent said the sale covers nine licenses, including the producing Gawain field, along with exploration blocks containing six undeveloped discoveries. Tullow paid £206 million for the two packages of assets, the first of which was transferred in April.
Tullow said it would have a 50% interest in Gawain, the gas from which is sold under a long-term contract to Powergen PLC, while its shares in the exploration licenses range from 15% to 80%. Net gas production from the package of fields is 150 MMcfd.
Announced last July, the 13-license package, originally operated by Atlantic Richfield Co., was sold to Tullow to resolve European Commission concerns over BP's takeover of ARCO in April 2000.
The first tranche, the Thames Hewett package, consisted of the Thames, Hewett, and Welland interests. Tullow expects to complete the transaction for the final license interest, which includes the producing Orwell field, "in the coming weeks" as regulatory approvals are given.
"The acquisition of Gawain and the exploration interests is an important step in the phased completion of the Thames-Hewett package," said Aidan Heavey, managing director of Tullow. "Gawain is an outstanding field and the exploration acreage is highly prospective.
"In the short period since we acquired our interests from BP we have seen a number of very encouraging events, most notably the 'K' well discovery," he added.
