NEO Energy has announced that it has signed a sale and purchase agreement with Dana Petroleum to acquire the full equity in the Western Isles FPSO. According to the agreement, NEO Energy will redeploy the FPSO at the Buchan field redevelopment. However, this transaction is subject to certain conditions such as final investment decision and regulatory approval of the Buchan redevelopment.

Offshore news sources have reported that this move signifies an investment of £30 million in offshore oil and gas operations in Scotland. The Buchan field was previously shut down due to its low production rates, but with this acquisition, NEO Energy aims to redevelop it into a profitable operation once again.

The Western Isles FPSO was previously used by Dana Petroleum for oil exploration and production in the North Sea. However, with NEO Energy’s acquisition, it will now be repurposed for use at the Buchan field redevelopment. The transaction is expected to take place shortly after regulatory approval is granted, and final investment decisions are made.