Tullow Oil sells Bangladesh assets to KrisEnergy for £27m

Kasmira Jefford
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TULLOW Oil, the FTSE oil and gas explorer, revealed this morning that has agreed to sell its assets in Bangladesh to Singaporean company KrisEnergy Asia for $42.35m (£27.2m).

Under the terms of the deal, KrisEnergy will take over Tullow’s 30 per cent stake in Block 9, which includes the Bangora gas producing facility and the Lalmai discovery.

Canada's Niko Resources will continue to hold a 60 per cent interest in the block, while the remaining 10 per cent is held by state-run Bangladesh Petroleum Exploration & Production Company

Last year gross production from the Bangora field averaged about 100m cubic feet of gas per day and 300 barrels of condensate per day.

Aidan Heavey, Tullow’s chief executive said: “This sale is part of a process of portfolio management and asset monetisation which forms a key part of our exploration-led strategy.”

“After 16 years of successful operations in Bangladesh, I wish the new owners of these assets and their staff well.”

The news follows plans announced last year to sell its Asian assets as well as it gas assets in the UK and Dutch Southern North Sea to focus on its core business in African and the Atlantic.