Parkmead, the Aberdeen-based independent energy group, is selling its UK offshore oil licences in response to government energy policy and will focus on its Netherlands gas assets and renewables.
The company said the £134 million disposal of wholly-owned subsidiary Parkmead (E&P) to Serica Energy will cut the need for further capital investment in its oilfield operations.
Parkmead said it has been considering the outlook for its UK North Sea oil licences and the potential capital required.
It said the offshore sector is facing “continuing challenges in the form of the current political environment towards UK oil & gas, and the focus of the UK Government on its Net Zero Strategy.”
It added: “In this context, Parkmead believes that the opportunity to progress these UK North Sea oil licences would be best served within the portfolio of a larger, North Sea focused company, enabling Parkmead to apply its expertise and the company’s resources on growing its Netherlands gas assets and its projects in renewable energies”
Parkmead is retaining 100% of its revenue producing assets, which comprise its Dutch natural gas fields and its UK wind farm, all of which are onshore.
In the UK, these assets include Kempstone Hill Wind Farm and its potential solar and wind energy development projects at Pitreadie.
The Parkmead team is progressing a joint venture agreement for a major wind farm of up to 100 MW centred around the company’s owned land at Pitreadie.
It will retain a portion of the potential upside associated with both Skerryvore and Fynn Beauly oil fields, with no further financial exposure to the group.
Executive chairman, Tom Cross, commented: “Through the sale of these UK offshore oil licences we have no further capital investment requirements, whilst retaining a very attractive share of the upside should any developments at Skerryvore or Fynn Beauly proceed.
“The group is well-funded to pursue the next phase of its growth plans in natural gas, renewable energies and international E&P.”
Gneiss Energy is acting as financial adviser to Parkmead on the sale.
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