Buzzard stakeholder sale looms

A LUCRATIVE stake in one of the biggest North Sea oil discoveries in recent times is up for grabs as privately-owned Intrepid Energy goes on the market for about £600m.

Former Tory minister Lord Moynihan is among those who will cash in from the sale, which could be revealed in days. It is understood JP Morgan has been hired to attract interest.

Intrepid owns 30% of the Buzzard oil field 60 miles north-east of Aberdeen. It was discovered two years ago and holds an estimated 400m barrels of recoverable crude.

Insiders claim Intrepid chief executive Mike Lynch has been under pressure to sell for months from venture capital backers and has been looking for up to $1bn (£584m).

Canadian producer Encana and BG Group, stakeholders in Buzzard, are likely to be front runners to buy Intrepid. Edinburgh Oil & Gas holds a 5% interest in the project.

The Department of Trade and Industry is expected to give Encana the go-ahead to develop the field as lead operator today.

One analyst said it was the 'perfect time' for Intrepid to sell before it has to contribute any more funding.

Another said: 'It was always unlikely they would be playing a role by the time Buzzard comes on stream because of funding issues surrounding the company.'

Intrepid's profits edged up last year to $17.1m from $16.9m on turnover of $166.1m. The company's dozens of other shareholders include Yale University in the US.