Page 10 - EurOil Week 11 2021

EurOil INVESTMENT EurOil

Tulip divests Dutch

assets for €220mn

NETHERLANDS DUTCH firm Tulip Oil has agreed to sell a have probably the lowest carbon footprint of any
group of gas fields in the Netherlands’ offshore production assets in the North Sea,” Kistos chair-
The buyer is AIM-listed zone to AIM-listed investment group Kistos for man Andrew Austin said. “To be producing gas,
Kistos. at least €220mn ($263mn), the companies said a vital transition fuel, from normally unmanned
on March 12. platforms powered by solar and wind is exactly
Tulip will sell its subsidiary Tulip Oil Neth- what we set out to do. In addition, we see poten-
erlands, which owns operating interests in the tial for significantly increased production from
Q-10A gas field and the Q-10B, Q-11B and M10/ discovered hydrocarbons within the licences.”
M11 discoveries, as well as other projects in the Tulip chairman Leo Koot added that the pro-
Dutch North Sea. ducer had “built a strong portfolio of producing,
Kistos will settle the €220mn sum through development and exploration assets, and has an
cash, a new debt instrument and by providing excellent reputation for exploration successes
some of its equity to Tulip, as well as assuming and on-time and on-budget project delivery.”
and refinancing an existing bond instrument The acquisition covers a 60% interest in Q10-
issued by the Dutch producer. It is working with A, where Tulip reduced output drastically last
advisors in Norway on options for the new debt year in response to a slump in European gas
instrument. prices. Those prices have now rebounded on the
The investment firm will also issue €5mn in back of cold winter temperatures.
warrants to Tulip at a 30% premium to the price Q10-A has 19.5mn barrels of oil equivalent
of any equity placing, as well as up to €163mn in 2P reserves and netted Tulip 5,470 boe per
in contingency payments payable when certain day of supply last year. Thanks to its use of wind
development milestones are met. and solar, its carbon emissions were less than
The deal’s closure will require various regula- 10 g CO2 equivalent per boe in 2020, versus a
tory and other consents. North Sea average of 21 kg CO2e/boe. Through
“We are very excited to be beginning the next the deal, Kistos said it would become one of the
phase of Kistos’ journey with the acquisition of lowest CO2 Scope 1 upstream emitters in North-
these profitable and cash generative assets, which West Europe. ™

P10 www. NEWSBASE .com Week 11 18•March•2021