Under the transaction, Spirit will retain associated liability for the decommissioning, subject to a cap.
Following completion, anticipated later this year, Chrysaor will assume full control of the Armada area.
Phil Kirk, the company’s chief executive, said: “Chrysaor can now progress its plans to realize the full potential of the fields and will shortly commence well site surveys and secure long lead items and drilling equipment.”
According to analyst Wood Mackenzie, these fields produced 8.3 boe/d in 2017 year and the previous owners, led by Shell, had planned to cease operations this year.
However, Chrysaor plans a late-life investment project. The analyst assumes this will mean further drilling.
Chrysaor will likely look to grow its portfolio further, it adds, with a declining asset base, and production set to fall below 100,000 boe/d by 2020.