Oil and Gas pipelines at a refinery

Case studies

Sale of ATP Oil & Gas (UK) to Alpha Petroleum

Using a bespoke M&A strategy to deliver optimal results

Our Non-Standard M&A and Restructuring teams provided restructuring and solvency advice to ATP Oil & Gas (UK) Limited following a US Bankruptcy filing in respect of its US parent and sole funder.

Deloitte’s collaborative, integrated approach and competitive process was successful based on the unique offering, technical skills and market knowledge of the Deloitte Upstream Oil & Gas Advisory team (“DUOGA”) 

The situation

  • Having filed for Chapter 11 bankruptcy protection, ATP Corporation ceased providing critical funding to ATP Oil & Gas (UK) Ltd (“ATP UK”).
  • ATP UK was left with significant creditors and future capex requirements.
  • Ongoing cashflow was dependent on revenue from its mature producing asset; liquidity was tight throughout the process.
     
oil and gas storage

The transaction

  • Deloitte provided a successful outcome, with the team advising ATP UK on the sale of its North Sea business throughout a complex 15 month transaction 
  • The transaction involved the sale of a portfolio including four producing gas fields and substantial development reserves.
     
Staff looking over a large printed out business plan

The outcome

Deloitte provided a successful outcome by advising ATP UK through both the US Bankruptcy Court approval process and the UK Company Voluntary Arrangement (“CVA”). The CVA was successfully delivered, with 100% of creditors supportive of the proposals. As a result the following outcomes were obtained:

  • A sale price at the upper end of expectations;
  • The UK management team was retained to run the business;
  • Regulator support was secured and Operator status was maintained;
  • Significant tax attributes were retained; and
  • Value for creditors was maximised in the circumstances.
     
Oil rig in a stormy ocean
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