Premier Oil (LON: PMO) agreed to fuse with Chrysaor, with stocks jumping 10% in opening Tuesday.
The agreement will show the new company that will become the largest independent London registered oil company.
This transaction is subject to shareholder approval.
Premier Oil Chairman Roy Franklin said: This marks a new and exciting chapter in the history of the premiere. ”
Chrysaor CEO Phil Kirk commented: “We combine the majority of our current international portfolio with organizations and operators to deliver value safely and play a role in the energy transition.”
The combined group produces over 250,000 barrels of oil per day.
Russ Mold, investment director at AJ Bell, said in the deal: When oil prices were above $100 a barrel and running to stand ever since, it was simply too much debt. ”
“In response to this background, our partnership with Chrysaor, a private equity-backed operator, is more like a rescue mission than an equal merger,” he added.
Premier Oil Stock (LON: PMO) trades 7.31% +7.31% at 16,30 (1358GMT).
