Premier exiting North Sea ETS pipeline system
Premier has agreed to sell its 30% interest in the Esmond Transportation System pipeline in the UK southern North Sea to CATS Management Ltd. for $31.6 million.
Certain payments in the transaction are linked to the achievement of milestones in respect of any future development of the Pegasus gas field.
The ETS pipeline, operated by Perenco UK, was built to transport gas from the offshore Esmond Area fields to the Bacton gas terminal on the North Norfolk coast.
Currently it handles exports from the Trent and Tyne fields, and the ENGIE-operatedCygnus field.
Assuming third-party consents and regulatory approvals, the sale should go through during the first half of 2018.
Premier plans to use the proceeds to reduce its debts.