Atlantic Petroleum’s previously announced deal to sell its stake in the Orlando oil field in the North Sea to Bridge Petroleum, has fallen through.
Bridge Petroleum has now told Atlantic Petroleum that it is “unable to complete the transaction under the SPA for 25% of the Orlando asset. “
The initial sales and purchase agreement was announced on June 6, 2016, and had entailed that Bridge Petroleum would pay the consideration of less than 7 million Danish Crowns (around $1 million), and a deferred consideration in the form of a share of the sale proceeds from the Orlando production. The deal was also subject to Bridge Petroleum acquiring Iona UK Limited, the operator of the field.
To remind, Iona Energy, operator of Orlando with a 75% stake, in January 2016 entered into administration after an unsuccessful financial restructuring attempt.
In a statement on Thursday, the Faroese oil company Atlantic Petroleum said that the sales deal collapsing meant the company would retain its 25 percent equity in the Orlando asset “until further notice.”
Ben Arabo, Atlantic Petroleum’s CEO said: “We and our funders, London Oil and Gas, see this as an opportunity to secure the Orlando asset either with another bidder or using the position under the Joint Operating Agreement to secure a better position for Atlantic Petroleum. We will update further when our Q3 accounts are issued 24th November.”
The Orlando field is located in the UK North Sea in Block 3/3b at a water depth of 142 meters. Sanctioned in February 2013, Orlando was meant to be developed as a subsea tie-back to the Ninian Central Platform in the Northern North Sea with first production expected in Q4 2016. However, Iona Energy’s administration left the future of the Orlando field uncertain.
Offshore Energy Today Staff