European energy group E.O has signed an agreement with British independent exploration and production company Premier Oil to sell its entire interest in its UK E&P Subsidiaries in the United Kingdom.
E.ON placed its North Sea E&P business under strategic review in November 2014. The UK oil and gas upstream portfolio comprises equity interests in 40 licenses, including a 5.20% interest in the Elgin-Franklin field, 47% interest in the Babbage field and a 50% interest in the Tolmount discovery. The divestment of E.ON E&P UK represents the second and final step in E.ON´s review process of the Exploration & Production North Sea business, following the sale of the Norway E&P business which concluded in December 2015.
The US$120m transaction is subject to customary regulatory approvals as well as Premier Oil shareholder and lender approval and is expected to be closed in the first half of 2016.