HitecVision’s NEO business has renegotiated its deal to buy British North Sea oilfields from Total, with Omani partner Petrogas dropping out and the French seller providing financial help.
The transaction is the second large oil and gas deal to be revised in the wake of this year’s oil price slump LCOc1 after BP (BP.L) delayed some payments from, and gave vendor financing to, Hilcorp last month.
Typically vendor financing means financial provisions such as marketing, hedging and working capital arrangements as well as junior debt. Wednesday’s deal is expected to close in the third quarter.
The initial price for the sale of the assets, which produce around 23,000 barrels per day, was $635 million. Under the new deal, Total will get better terms if oil prices recover sharply.