Low-risk oil group Northern Petroleum is to sell off its its Dutch operations for £16million.
The deal will see Canadian energy firm Vermilion take over the London-based firm’s operations in Holland, which it acquired eight years ago.
It includes five onshore gas fields and a further field offshore, along with two discoveries, but require further investment to bring production levels up to a significant standard.
The deal will also see Northern take a 20% stake in any profit from the Papekop discovery, if it is brought into production, along with a share from production in the Posidonia unconventional oil and gas reservoir.
“The assets in the Netherlands have served the group well in providing cash inflow over the last six years, but the time is now right to conclude a sale,” said Northern chief executive Keith Bush.
“The completion of the sale will represent the achievement of the first of three key objectives we set ourselves in August this year.
“Our attention will now turn to realising some of the significant latent value held within the Company’s Southern Adriatic licences and the testing of our redevelopment play in Canada.”