Sector News

Suttie’s First Oil for sale as oil continues to slide

January 11, 2016
News

Ian Suttie has reportedly placed his flagship First Oil up for sale as declining oil prices batter the sector’s financial books.

The firm, which the Scottish multi-millionaire founded in 2001, describes itself as the largest British-owned private oil company in the North Sea.

Its website currently features a divestments tab, where it advertises its interests in the Kraken development, Lyon exploration project, Norfolk exploration area and Glenn oil discovery.

The move to sell reportedly comes after Suttie decided against providing an additional funding boost to the firm.

First Oil owns a 15% stake in Kraken, which equates to a $100million obligation.

The company’s website describes the divestment as an “opportunity to invest in one of the largest fields in the UKCS, with reserves of 136.5 MMbbls”.

A First Oil spokesperson told the Sunday Times: “The recent substantial reduction in oil price meant that the planned refinancing no longer worked for all parties.”

Energy Voice has contacted Suttie for additional comment.

Suttie is estimated to be worth £350million, according the most recent Sunday Times rich list – the figure is £100million less than the previous year’s value.

Brent crude has fallen 70% from the $115 high in 2014 to last week’s $33 low.

The dramatic drop forced Iona Energy into administration last week.

Subsea contractor Ceona was also mothballed with the loss of 102 jobs.

By Rita Brown

Source: Energy Voice

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Food & Drink

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

Send this to a friend