Premier Oil rebuffs Ophir’s oil tie-up

TWO of Britain’s major oil explorers are today expected to confirm they have held talks over creating a £3billion powerhouse with international operations from the Falklands to East Africa.

oil, british oil, powerhouse, Falklands, East Africa, Africa, Shell, BP, Tullow Oil, Premier oilTwo British oil firms works internationally[GETTY]

Premier Oil, whose operations range from the UK to the Falklands, Indonesia and Pakistan, is believed to have rebuffed two approaches from FTSE 250 rival Ophir Energy, which has extensive oil and gas assets in Africa.

Premier is understood to have considered a potential tie-up, creating the fifth largest UK-listed oil explorer after BP, Shell, BG Group and Tullow Oil but to have rejected it as not a strategic fit and not in the best interests of shareholders.

An initial informal offer was reportedly made in February soon after Premier announced chief executive Simon Lockett was stepping down amid investor pressure.

The company had lost one third of its market value over the previous nine months.

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