Tullow to buy Nuon for €300m

TULLOW Oil is set to significantly enhance its European-based assets by acquiring Dutch company Nuon Exploration & Production, for €300 million.

Through buying the Amsterdam-headquartered company, Tullow will add a further 25 licences — including more than 30 producing fields — and numerous development and exploration opportunities to its North Sea asset base. Its gas production levels, in the area will increase by 9,000 barrels of oil equivalent per day (boepd) to around 23,000 boepd. It will also add reserves and resources of 28 million barrels of oil equivalent (mmboe).

Although chiefly linked with Africa, Tullow has long had a presence in the North Sea and views the area as one with significant long-term potential.

The Dutch firm’s portfolio includes a number of near-term development and exploration opportunities with the potential to sustain and grow production in the short term.

The Irish-founded exploration company’s chief operating officer, Paul McDade said the Nuon deal is “a natural fit” with Tullow’s existing southern North Sea portfolio.