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Premier Oil gets backing for BP North Sea deal

Approval is now needed from the Scottish Court of Session to get the scheme formally passed

Premier African Minerals Ltd -
The BP assets produce 18,000 barrels per day currently

Premier Oil PLC (LON:PREM) has moved a step closer the acquisition of BP’s assets in the North Sea after the majority of creditors backed a financial restructuring.

One notable exception was Hong Kong-based hedge fund manager ARCM, which has been a constant critic of the deal that it claims will expose the FTSE250 oiler’s finances to ‘significant incremental risk’.

Some 86.8% of super senior creditors approved the scheme nonetheless, while 83.86% of senior scheme creditors voted in favour.

Approval is now needed from the Scottish Court of Session to get the scheme formally passed with the hearing scheduled to start on 17 March.

In January, Premier announced it would acquire the Andrew Area and Shearwater assets from BP for US$625mln.

A US$500mln share issue will fund the deal, which also included changes to its existing loan terms.

ARCM, which claims to be Premier’s largest creditor, said there were important questions relating to the acquisitions for which the answers are unclear.

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