Tullow to buy Nuon E&P

Tullow Oil is to buy Nuon Exploration and Production for €300 million in cash, the company said today.

The purchase of Nuon E&P from the Vattenfall Group will add 25 licences to Tullow's North Sea operations, including more than 30 producing fields, along with development and exploration opportunities, and key infrastructure.

Gas production at the North Sea will rise by 9,000 boepd to about 23,000 boepd, while reserves and resources will be 28 mmboe.

In a statement today, the company said the Nuon E&P assets would provide a stronger platform for growth.

"This acquisition is a natural fit with Tullow's Southern North Sea portfolio and materially enhances our potential for growth in the Dutch sector, an area with significant opportunities and a stable tax regime," said chief operating officer Paul McDade.

Whilst the scale of the acquisition is modest from a Group perspective, it significantly enhances the value generation potential of our North Sea business."

The deal is expected to be completed by July 2011.