Premier Oil, a UK-based oil and gas company, has completed its debt refinancing after months of talks with creditors.
The company on Friday said that the refinancing of the group, announced in February, had become effective. In an operational update earlier this month Premier said its net debt was $2,74 billion.
The company, which recently took part in a billion barrel oil discovery in Mexico, said the completion of the refinancing provided a solid foundation for Premier to deliver its strategic plans by preserving the Group’s debt facilities, resetting financial covenant headroom, and extending maturities to 2021 and beyond.
The revised financing structure allows both for debt reduction utilizing the Group’s cash flows generated from its low cost stable production base, and future growth via selective investment in unsanctioned projects, at appropriate equity levels and with due regard to the commodity price environment, Premier oil said.
Tony Durrant, CEO, commented: “The completion of the refinancing process represents a significant milestone for Premier. We are grateful for the level of support received from our lenders during this process which has put Premier on a strong footing to deliver value for all of our stakeholders in the medium term.”
The completion of the refinancing now gives Premier Oil a breathing space to focus on its currently most important project, the Catcher field development in the North Sea.
The field is scheduled to start oil production later this year, via a BW Offshore-supplied FPSO, set to sail away from Singapore in August. Once started, the journey should take about six weeks to the final offshore location in the UK.
Offshore Energy Today Staff