Atlantic winds down North Sea operations

Atlantic Petroleum, which is exiting E&P in the North Sea, has updated the status of its remaining licenses.

Offshore staff

TORSHAVN, Faroe Islands – Atlantic Petroleum, which is exiting E&P in the North Sea, has updated the status of its remaining licenses.

In UK central North Sea license P354, block 22a containing the producingChestnut oil field, Atlantic defaulted on certain payments in mid-January, leading to the loss of rights to petroleum shortly after.

The company has since reached agreement with Centrica and Dana Petroleum regarding forfeiture of the asset and outstanding liabilities. Atlantic no longer has any responsibility to decommission the field.

At P273 and P317, blocks 20/3a, 2a and P273, P317 and P1580, blocks 20/3a, 2a, and 3f, Atlantic announced last December it was default under theEttrick and Blackbird joint operating agreement for failing to make payments.

The asset remains subject to forfeiture. Furthermore, operator Nexen has terminated Bluewater’s contract for theAoka Mizu FPSO.

Production from the field ceased on June 1, and decommissioning of the vessel has started.Atlantic is in discussions with the field partners regarding its outstanding liabilities.

As for P218 and P588, blocks 15/21a, b, c and f, Atlantic has decided that due to the low oil price, thePerth/Dolphin/Lowlander (13.35%) development does not fit with its future strategy and the company is therefore in default on the assets.

It is currently withdrawing and transferring its equity to the other joint venture partners.

08/25/2016

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