Future seems uncertain for Atlantic Petroleum, a Faroese oil and gas company with assets in UK and Norway, as the talks for the sale of its stake in a UK North Sea field have dragged on for weeks.
Namely, the company said on Thursday it was still in discussions with a “London-based party” to sell its 25% stake in the Orlando field development off UK, and also in talks with banks to secure funding for continued operations. However, the company also acknowledged that should the talks fail, the company might go into administration.
To remind, Iona Energy, the operator of the Orlando field with a 75% stake in went bust, and saw its board of directors resign in November, after a restructuring attempt, of which a farm out of Orlando was the key, failed.
In a statement on Thursday, Atlantic Petroleum said it was also in discussions with its creditors on potential solutions for the company.
“The company anticipates that these discussions will continue over the New Year into early January. The company is in discussions with its principal bankers to ensure it retains access to sufficient liquidity to see through the ongoing process. There is no certainty that a solution or a satisfactory outcome will be forthcoming for the company and falling that, it is likely that the Company will go into administration or restructuring.”
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, with the operator bust, and Atlantic struggling, the field could remain undeveloped for the forseeable future.
Offshore Energy Today Staff