UK minnow United Oil & Gas announced on 23 July it is paying $16mn for compatriot Rockhopper’s Egypt assets, essentially 22% of the 5,100 b/d Abu Sennan concession in the Western Desert. Confusingly, the concession operator (with 25%) is also called United: China’s United Energy Group, which acquired the asset through its $650mn takeover of Kuwait Energy earlier this year (MEES, 8 March). Private firm Global Connect holds 25% and Canada’s Dover Investments holds the remaining 28%.

UK major BP will help finance the latest deal, and will “provide a prepayment financing structure of up to $8mn.” As part of that deal United and BP “have entered into an offtake agreement regarding United’s future oil and gas production.” Unable to secure finance itself, United approached BP, who in turn evaluated Abu Sennan before giving the green light on the deal, MEES understands. (CONTINUED - 203 WORDS)