BP cuts its price in Premier deal

The major will take a much lower upfront fee with more to follow from production revenues and if prices recover

BP has significantly dropped the upfront costs for UK independent Premier Oil to buy some of its non-core UK continental shelf (UKCS) assets to try to help get the deal over the line. It has also agreed to retain a substantial portion of decommissioning costs, and while more cash will accrue post-transaction, it may not get all of the previously agreed price. Premier announced in January that it would pay $625mn for BP’s shares in the Andrew Area field, ranging from 50pc to 100pc holdings, and its 27pc stake in Shearwater assets—as well as agreeing a $191mn fee with Korean-backed producer Dana Petroleum for an additional 25pc stake in the Tolmount Area that Premier operates. But it will now