Unocal announces sale of North Sea exploration subsidiary
Sugar Land, Tex., July 11, 1996 -- Unocal Corporation said today that it has sold the entire issued share capital of its Unocal North Sea Exploration, Ltd. ("UNSEL") subsidiary to British-Borneo Petroleum Syndicate, P.L.C. ("British-Borneo") for approximately US$24 million, including repayment of inter-company advances.
Under the terms of the sale, Unocal will receive approximately US$18.25 million in cash and US$5.5 million equivalent in British-Borneo shares. In addition, there is a provision for a cash adjustment of up to US$3 million, either way, based on the level of oil reserves in the Durward Field, which will be determined after initial production.
"This sale is part of our ongoing strategy to place less emphasis on the North Sea, which began with the sale of our Norway interests in 1990 and a large part of our UK exploration interests in 1993," said Jack Schanck, Unocal group vice president for world-wide oil and gas operations. "This sale substantially completes the divestiture of Unocal's UK exploration interests, and the proceeds will give Unocal additional capital for potentially high-return, long-term projects in Central and Southeast Asia."
Schanck added that Unocal previously announced it is considering the divestment of its oil and gas interests in the Netherlands through the sale of Unocal Netherlands B.V.
Unocal Britain Limited retains its interest in Block 2/4 and continues to operate the Heather Platform in Block 2/5, which produces 7,000 barrels of oil per day.
UNSEL's assets include a 7.0% working interest in Blocks 21/16 and 21/11, which contain the Durward and Dauntless oil fields; a 6.66% working interest in Block 9/11a, which contains the Mariner heavy oil field; a 7.0% working interest in Blocks 23/16c and d, which contain the Mortimer discovery, and Block 23/17; a 4.8% working interest in Block 15/28b, which contains the Rubie oil discovery, a 7.98% working interest in Block 29/8b, which contains the Acorn oil discovery; and various working interests in an additional seven exploration blocks across the UK North Sea.
The sale agreement requires approval by the UK Secretary for Trade and Industry.
Updated: July 1996