Clyde & Co has advised the Kuwait Foreign Petroleum Exploration Company (“KUFPEC”) on a $US500m deal with EnQuest PLC, the largest independent oil producer in the North Sea.
Under the agreement, which is subject to regulatory approval, EnQuest will farm out a 35% interest in its Alma and Galia oil field developments in the North Sea to KUFPEC. KUFPEC is to invest a total of approximately US$500m in cash (around £300m), comprised of up to $182m in future contributions for past costs and a development carry for EnQuest, and of KUFPEC’s direct share of the development costs.
The Clyde & Co team was led by corporate energy partner Mike Wachtel.
Mike Wachtel said: “We were delighted to advise KUFPEC on this transaction which is an important step for the company in meeting its strategic objective of acquiring quality production and reserves.”
