First Oil Expro is the latest casualty in the oil industry as prices continue to drop while operation costs remain high. The company recorded a pre-tax loss of £70 million last year.
Joint administrators, Richard Beard, Blair Nimmo and Jim Tucker from KPMG have been appointed to oversee the process and sell on parts of the business and its assets.
Partners of the privately owned business, Cairn Energy and EnQuest, will take on its 15% stake in the Kraken Field project. Four oilfields and two projects have also been bought by Zennor Petroleum.
Blair Nimmo commented, “We are delighted to announce these two company sales, which are an excellent outcome for stakeholders.”
“The fact that their owner, First Oil Expro Limited, sold them via an administration process is a reflection of the significant challenges facing UK North Sea oil and gas companies in the current oil price environment.”