One of the North Sea’s largest producers has bought into plans to create a new hub around a field that ceased operations six years ago.

Neo Energy is taking a 50% stake in the Greater Buchan Area from Jersey Oil and Gas, according to The Times this morning.

The Aim-listed Jersey had signalled last week it was close to agreeing a deal with an unnamed “industry heavyweight”.

It was confirmed yesterday that it is Neo that is hoping to move the project forward.

Jersey has acquired a number of licences in and around the Buchan field, which came into production in 1981 and ran until 2017.

It believes there could be upwards of 100 million of barrels across the area, which lies about 120 miles northeast of Aberdeen, potentially providing decades of production.

Neo is paying $28.9million in cash in staged payments when certain milestones are achieved and will become the operator of the Greater Buchan Area.

The company is to pay Jersey’s share of the cost to get the area approved for development, which is expected to cost about $25 million.

First oil from the project has been targeted for 2026 although Jersey noted that could depend on stability in the UK’s fiscal regime.

Click here to read the full story in today's Times newspaper.

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