BP cuts its price in Premier deal
The major will take a much lower upfront fee with more to follow from production revenues and if prices recover
BP has significantly dropped the upfront costs for UK independent Premier Oil to buy some of its non-core UK continental shelf (UKCS) assets to try to help get the deal over the line. It has also agreed to retain a substantial portion of decommissioning costs, and while more cash will accrue post-transaction, it may not get all of the previously agreed price. Premier announced in January that it would pay $625mn for BP’s shares in the Andrew Area field, ranging from 50pc to 100pc holdings, and its 27pc stake in Shearwater assets—as well as agreeing a $191mn fee with Korean-backed producer Dana Petroleum for an additional 25pc stake in the Tolmount Area that Premier operates. But it will now
Also in this section
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
