Dana Petroleum and NEO Energy have announced the signing of a sale and purchase agreement under which NEO Energy will acquire Dana’s full equity in the Western Isles FPSO. NEO Energy intends to redeploy the FPSO at the Buchan field redevelopment, subject to certain conditions. These conditions include final investment decision and regulatory approval of the Buchan redevelopment.

The Western Isles FPSO was acquired by Dana in 2014 from BP for $25 million. The sale marks a significant milestone in the development of offshore oil and gas resources in Scotland, where NEO Energy has established itself as a major player in recent years.

The announcement comes just days after Dana Petroleum announced its plans to cut up to 350 jobs amid rising costs and falling oil prices. The company has been under pressure to reduce costs, with some analysts predicting that it could face bankruptcy if it fails to do so.

NEO Energy, on the other hand, is expected to benefit from the acquisition of the Western Isles FPSO, which will allow it to expand its operations in Scotland and increase its share of global offshore oil and gas resources. The company has already invested heavily in offshore energy projects around the world, including those in Norway and Brazil.

Offshore oil and gas news continues to dominate headlines this week as countries around the world grapple with rising costs and falling demand for these resources. In addition to Dana Petroleum’s job cuts, Shell has announced plans to cut up to 900 jobs globally amid a slowdown in production at its North Sea assets. Meanwhile, Russia has said that it expects OPEC+ production cuts due next year will lead to an increase in global oil prices by about 15%.