Exchange of interests

has announced the exchange of equity interests in certain North Sea production assets with subsidiaries of

.

The Reading-based company said in a statement that it proposes to acquire BP's entire equity in the Everest, Lomond and Armada fields and part of BP's equity in the Erskine field, which is operated by Chevron.

All of the BP fields are located in the central North Sea region.

In return, BG Group will transfer all of its equity interests in fields in the southern North Sea to BP.

The exchange, valued at approximately £300m, is said to be broadly neutral in value and production for both BG Group and BP.

Mark Carne, executive vice-president and managing director, Europe and Central Asia at BG Group, said: ‘This agreement consolidates and strengthens BG Group's UK Continental Shelf interests.

'By focusing on material interests in key hubs, we can increase efficiency and economically develop satellite fields.

'We have also shown with recent high-pressure, high-temperature finds that there is still significant potential in the central North Sea.’

BG Group will assume control of BP's equity in the Everest, Lomond and Armada fields, increasing its equity stake in these fields from around 60 per cent to around 80 per cent.

BG Group will become operator of the Everest and Lomond fields and will continue to operate the Armada field.

As part of the agreement, BG Group will transfer its exploration and production interests in the southern North Sea to BP.

These include the Easington Catchment Area (ECA) fields (Apollo, Artemis, Mercury, Minerva and Neptune, which are BG Group-operated, and the BP-operated Wollaston and Whittle fields), and the BG Group equity in the BP-operated Amethyst field.

Completion of the exchange is expected by June 2009, subject to regulatory approvals.