Premier weighs up share placing

Premier Oil is reported to be mulling over a share placing to help finance a deal for £1.17 billion worth of North Sea fields.

The London-listed firm is in the running for a package of assets put up for grabs by US oil major Chevron, the Sunday Times reported.

Premier faces stiff competition from the likes of private equitybacked Chrysaor, Israeli firm Delek Group and petrochemicals giant Ineos, the report said.

Ineos, led by billionaire Jim Ratcliffe, is in talks to buy ConocoPhillips’ UK North Sea business.

“Premier declined to comment on ‘speculation’”

To remain in contention in the Chevron auction, Premier is weighing up a rights issue or a share placing, the report said, citing industry sources.

The company could also divest its Latin American business to reduce the number of new shares it would need to sell, it was suggested.

Premier declined to comment on “market speculation”.

It is believed the company is yet to decide whether to bid for the Chevron package, and would not consider selling its Latin American business, which includes interests in Brazil and Mexico.

Premier, which has a base in Kingswells, Aberdeen, restructured its debts in 2017.

The firm’s finances are gradually improving.