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
Also in this section
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
9 December 2025
The group’s oil production declined in November, our latest analysis finds, amid divided sentiment over market balances and geopolitical jitters
8 December 2025
The Caribbean country’s role in the global oil market is significantly diminished, but disruptions caused by outright conflict would still have implications for US Gulf Coast refineries
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
