Transaction with Wintershall on Norwegian continental shelf now completed

abarrelfullabarrelfull wrote on 01 Aug 2013 06:29
Tags: europe norway statoil upstream wintershall

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The agreement signed with the German oil and gas company Wintershall—which includes the divestment of Statoil's share of the Brage licences, a farm-down in Gjøa and Vega, and acquisition in the Edvard Grieg licence in the North Sea—has been completed.

The consideration to be paid to Statoil is USD 1.45 billion. This amount includes a contingent consideration of USD 100 million relating to production on Vega.

"This transaction demonstrates how active portfolio management can realise value and provide opportunities for long-term growth and for us to boost our financial flexibility," says Øystein Michelsen of Statoil, executive vice president for Development and Production Norway.

By acquiring a share in the Edvard Grieg licence, Statoil will enhance its position as the biggest player on the Utsira High formation by owning shares in all the area's discoveries: Johan Sverdrup, Edvard Grieg, Gina Krog and Ivar Aasen.

"The Norwegian continental shelf (NCS) is, and will continue to be, the backbone of our company. By developing new fields and increasing oil recovery, it is our ambition to continue producing more than 1.4 million barrels of oil equivalent per day from the NCS in 2020," says Michelsen.

As part of this agreement, signed on 22 October last year, Wintershall takes over operatorship of the Brage field. The transfer of operatorship is expected to take place on 30 September, though Statoil will support Wintershall by hiring out personnel and providing other assistance for up to 18 months after 1 October.

"We've worked well together with Wintershall to ensure that the transfer of operatorship proceeds in a safe and efficient manner," says Michelsen.

As part of the deal, Statoil and Wintershall have also signed a letter of intent relating to collaboration within the areas of improved oil recovery and research into unconventional hydrocarbon deposits.

The transaction encompasses the following areas on the NCS:

  • Farm-down
    • Gjøa (PL153 and153B) - From 20% to 5%
    • Vega (PL090C, PL248 and PL248B) - From 54% to 24%
  • Divestment
    • Brage (PL053B, PL055, PL055B and PL185)
    • From 32.7% to 0%
  • Acquisition
    • Edvard Grieg (PL338) - From 0% to 15%

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