Page 20 - Euroil Week 44 2020

EurOil NEWS IN BRIEF EurOil

refinery in the Netherlands to Neste Oyj for The transaction is expected to result in depreciation and amortisation (EBITDA)
258mn euros ($300mn) in cash. Harbour and other Chrysaor shareholders rose to $515.6mn from $411.3mn a year
unge said it will lease the Rotterdam owning at least 77% of the combined group. earlier, beating the $506.1mn seen in a
facility back from Neste, an Espoo, Finland, Premier’s stakeholders will own 23% of the Refinitiv poll.
producer of renewable diesel fuel, in a combined group. Lundin revised its 2020 output guidance
phased transition through 2024. to a range of 161,000-163,000 barrels of oil
The St. Louis agribusiness giant said equivalent per day (boepd) from 157,000
it expects to complete the sale in the first Aker BP posts higher than boepd previously, while maintaining its plan
quarter of 2021, adding that it will use some to boost production next year to 170,000-
of the proceeds to improve operational expected operating profit 180,000 boepd.
flexibility and efficiency in its asset footprint. Norway in May joined OPEC and other
Norwegian independent oil firm Aker BP producers in voluntary output curbs to help
reported on October 29 higher-than-expected prop up oil prices amid the coronavirus
Premier Oil creditors back operating profits for the third quarter and pandemic.
“We are pleased to report that in the
slightly cut its expected spending for the full
merger with Chrysaor year. fourth quarter 2020, our fields have been
Operating profit rose to $242mn from
granted increased production permits by
UK oil company Premier Oil’s creditors have $196 million in the same quarter a year ago, the authorities, meaning we will now target
given their approval for the company’s merger beating a forecast of $234mn in a Refinitiv approximately 175,000 boepd for the fourth
with rival Chrysaor, proposed in October. poll of analysts. quarter,” Lundin said in a statement.
The two UK-based offshore oil and Aker BP narrowed its full-year 2020 “At Johan Sverdrup, performance has
gas companies Premier Oil and Harbour- production guidance to 210,000-215,000 continued on or above expectations and
controlled Chrysaor agreed to merge in an barrels of oil equivalent per day (boepd) we look forward to the results of the next
all-stock transaction, via a reverse takeover. from 205,000-220,000 boepd previously, after Phase 1 oil capacity testing, which will occur
The involved parties said the proposed reporting 201,600 boed for the third quarter during the fourth quarter of this year,” the
merger would create the largest independent on October 14. company said.
oil and gas company by production and Its output rose 38% from a year ago Lundin has a 20% stake in Equinor-
reserves listed on the London Stock thanks to the startup of Norway’s Johan operated Sverdrup, western Europe’s largest
Exchange with combined production of over Svedrup oilfield, the largest in western oilfield, whose current production capacity is
250,000 boepd as at June 30 2020. Europe, where Aker BP has an 11.6% stake. at 470,000 boepd.
Premier Oil said on November 3 that it The company controlled by Norwegian Lundin Energy’s shares have fallen 47%
had received the requisite level of support billionaire Kjell Inge Roekke and partly this year, in line with a 46% average decline
from each class of its creditors for the owned by BP repeated plans to pay $425mn in European oil stocks.
proposed merger of Premier and Chrysaor in dividends for the full year. “Following a volatile and unpredictable
Holdings Limited and the reorganization Aker BP cut its full-year capital spending first half of 2020, the third quarter was one
of Premier’s existing finance arrangements guidance to $1.30bn from $1.35bn and of financial and operational discipline and
with those creditors entering into a binding exploration spending to $300mn from delivery,” Chief Executive Alex Schneiter
support letter. $350mn. said.
Chrysaor, Premier Oil Set to Merge “I am also very pleased that we have
“Under the support letter, the creditors restarted our 2020 exploration programme
have, among other things, irrevocably Lundin raises production with the Polmak well in the Southern Barents
undertaken to vote in favor of the Court- Sea in October 2020,” said Schneiter, who is
approved restructuring plans, and have target after Q3 profits stepping down at the end of the year.
agreed to waive Premier’s financial covenants UK-born Nick Walker, 58, Lundin’s chief
until completion of the transaction. As such, growth operating officer, was appointed in August to
the merger agreement between Premier, lead the firm from the start of 2021.
Harbour, funds managed by EIG and Swedish independent oil firm Lundin Energy,
Chrysaor has been released from escrow,” a partner in Norway’s giant Johan Sverdrup
Premier Oil said. field, reported on October 30 a bigger-than-
According to Premier Oil, the transaction expected rise in core profit for the third
is expected to complete by the end of Q1 quarter and raised its full-year output target.
2021. Earnings before interest, taxes,

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