Oilfield Technology, Monday, 23 Nov 20
Dana Petroleum and NEO Energy have announced the signing of a sale and purchase agreement under which NEO Energy will acquire Dana’s full equity in the Western Isles FPSO. This news comes after NEO Energy revealed its plans to redeploy the FPSO at the Buchan field redevelopment. The transaction remains subject to the satisfaction of certain conditions including final investment decision and regulatory approval of the Buchan redevelopment.
The deal marks a major milestone for both companies as they continue to work together towards their shared goal of increasing production from the Buchan field. It also underscores the growing demand for oil and gas resources in the North Sea, which is expected to drive continued investment and innovation in offshore energy technology.
According to sources close to the matter, Dana Petroleum has been actively seeking a buyer for its stake in the Western Isles FPSO since last year. The company had expressed its intention to divest from its offshore operations in order to focus on its upstream business, but ultimately decided to hold on to its stake in the Western Isles FPSO until it found a suitable buyer. NEO Energy emerged as an attractive partner due to its extensive experience in offshore oil and gas development, as well as its ongoing investment in the Buchan field redevelopment project.