Tullow Oil PLC
16 June 2003
PRESS RELEASE
TULLOW OIL PROPOSES TO ACQUIRE ADDITIONAL EQUITY IN THE HEWETT UNIT AND THE
BACTON GAS TERMINAL FROM CONOCOPHILLIPS AND TO ASSUME OPERATORSHIP
Tullow Oil plc (Tullow), the independent international oil and gas exploration
and production company, today announced that its wholly-owned subsidiary, Tullow
Oil UK Limited (TOUK), has entered into Heads of Terms with the current
operator, ConocoPhillips (U.K.) Limited, to purchase its 18.97% equity in the
Hewett Unit, the associated export pipelines and the related Bacton onshore gas
processing terminal, and to assume operatorship.
The total consideration, payable on completion, is $3.75m, with an effective
date of 1st January 2003. TOUK currently owns 19.85% of the above interests,
purchased from BP/ARCO. The gross remaining reserves of the Hewett Unit as at
the effective date are currently estimated at 48.5bcf of sales gas.
ConocoPhillips (U.K.) Limited is the British exploration and production
affiliate of ConocoPhillips Inc (NYSE:COP).
The Hewett Bacton infrastructure comprises six offshore installations, three
normally unmanned, and the others forming a central processing complex which
exports gas to the onshore terminal at Bacton in East Anglia. The Bacton
Terminal also processes gas from other fields, including the Thames Area fields
and their satellites where TOUK has significant interests.
TOUK will take over the operatorship of both the Hewett Unit and the onshore
Bacton Terminal. For this purpose, TOUK intends to enter into an arrangement
with Petrofac Facilities Management Ltd (Petrofac) to be the Duty Holder for the
Hewett Unit and to provide the day-to-day operational management and associated
support services to the facilities. Petrofac is currently contracted to provide
management services in respect of several offshore installations for other North
Sea operators. Tullow has appointed Alan Marshall as Regional Manager, based at
Bacton. He and a small support team of Tullow staff will work jointly with
Petrofac. Alan has considerable operational and managerial experience of major
North Sea production facilities.
Negotiations on the full legal documentation to implement the proposed
commercial and operational arrangements are continuing and are expected to be
finalised in the third quarter of 2003. Completion of the transactions will
also be subject to the necessary governmental and co-venturer approvals.
John Lander, TOUK's Managing Director, stated: 'This important acquisition and
operatorship will enhance Tullow's position in our Hewett/Thames core area. It
is our view that smaller companies such as Tullow can bring a more focused
approach to assets which might not be seen as material to the larger oil
companies. Through a number of initiatives we see a great opportunity to extend
the economic life of the Hewett Unit and the Bacton Terminal. We intend to
continue the current operator's excellent record on safety and environmental
performance and look forward to enjoying a long and stable working relationship
with our new workforce, the local authorities and the local community'.
For further information contact:
Tullow Oil plc - +44 020 7333 6800
Aidan Heavey - Chief Executive
Tom Hickey - Finance Director
John Lander - Managing Director - TOUK Limited
Binns & Co PR Ltd - +44 020 7786 9600
Emma McCaffrey
Peter Binns
Ben Willey
NOTES TO EDITORS:
Tullow Oil plc is a UK registered company, quoted on the London and Irish stock
exchanges, and one of the largest Independent Exploration and Production
companies in Europe. Tullow Oil is a dynamic player in the international oil and
gas industry. Its primary offices are in London (UK & Corporate) and Dublin
(International Business).
Tullow Oil has interests in 54 exploration and production licences spread over
three main areas - South Asia, Africa, and Europe. It has regional offices in
South Asia and Europe and is planning to open one in West Africa.
Post completion, Co-venturers in Hewett/Bacton will be:
Tullow Oil UK Ltd 38.82%
Eni (UK) Ltd 18.81%
Eni LNS plc 8.53%
Centrica Resources Ltd 23.14%
Superior Oil (UK) Ltd 10.69%
This information is provided by RNS
The company news service from the London Stock Exchange
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