BP Considers Sale of Interests in 'MAST' Oilfields

abarrelfullabarrelfull wrote on 06 Aug 2012 12:49

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14 March 1996

BP Exploration announced today that it is considering the sale of its interests in the mature Beatrice, Buchan, Clyde and Thistle oilfields in the North Sea.

The fields make up BP's Mature Asset Team (MAST), which was established in 1994 with the goal of extending field life, while maintaining the highest possible standards of Health, Safety and Environmental performance.

The MAST team have achieved a minimum two-years extension of field life and based on current estimates, the company's share of production from these fields should extend well into the next century.

BP said that "two years ago, these fields had little value, but the improvement in performance has been so marked that a number of companies have recently expressed interest in these fields. MAST has demonstrated that with the correct approach, mature North Sea fields can be run profitably and safely. However, these fields still remain disadvantaged when competing with BP's other North Sea assets for funds and management time.

"As these mature fields still offer significant upside potential, the next logical step is to establish whether there are others willing to invest in their futures, and further extend field life. If there are, then this should bode well for the future. Our overriding concern throughout the sale process is to ensure staff are treated properly and that we maintain our very high standards of safety and environmental performance."

Notes to Editors:
The MAST fields are: Beatrice on block 11/30a plus the associated oil terminal at Nigg; Buchan on blocks 20/5 and 21/1; Clyde on block 30/17b; and Thistle on blocks 211/18, 211/18a and 211/19. Also included are the Thistle field satellites Don and Deveron, and the Clyde field satellites Medwin and Leven. The fields currently produce around 59,000 barrels a day, with BP's share accounting for approximately half the total.

A number of companies, ranging from oil majors to small independents, have expressed initial interest in the fields and the sale process is now underway.

If an acceptable buyer is found, from the viewpoint of price, technicalcapability, and financial credibility, and subject to the approval of the Department of Trade and Industry, the Health and Safety Executive and of licence partners, the sale should be completed some time in the late summer of 1996.

BP's net share of production from North Sea fields is some 620,000 barrels a day of oil equivalent. BP is currently developing the Harding, Andrew and Foinaven fields which will each come on stream later this year.

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