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Solan Stream (UK Continental Shelf, Oil)

The Asset

  • UK Continental Shelf oil field located 150km west of the Shetland Islands
  • 100% owned and operated by Premier Oil (“Premier”)
  • A key producing asset within Premier’s UK portfolio
  • Expected by Premier to produce over 40 million barrels of oil
  • Field development plan designed to minimize downtime due to weather by use of a fixed steel jacket and sea bed storage tank

The Counterparty (Premier)

  • Premier is a UK listed, independent E&P with a diverse portfolio of assets across the UK, Norway, Indonesia, Falkland Islands and Vietnam
  • US$1.2bn market capitalisation as of June 2015 when FlowStream entered into the stream
  • Premier is one of the most experienced UKCS independents
  • Premier has been a participant in the Solan field since acquiring a 60% working interest in 2011 and subsequently acquired the remaining 40% working interest in 2015
  • Solan is expected to be a major contributor to Premier’s total global production with Premier targeting a field production plateau rate of between 20 to 25 thousand barrels of oil per day

The Deal

  • FlowStream entered into a stream agreement with Premier in June 2015
  • FlowStream provided US$100 million in cash to Premier in return for a fixed percentage of Premier’s production from the Solan field

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