Operator Aker BP has completed an acquisition of Hess Norge, which owns 10% stakes in the Norwegian North Sea Valhall and Hod fields, from Hess Corp for US$2 billion.
At the same time, a deal by Aker BP to sell 10% interest in the Valhall and Hod fields to Pandion Energy has also completed.
Aker BP now 90% interest in the Valhall and Hod fields and has also assumed Hess Norge's tax positions, which included a tax loss carry worth about $1.5 billion.
“We are high grading our portfolio by investing in our highest return assets and divesting mature, higher cost assets,” CEO John Hess said. “This strategy is enabling us to prefund our world-class opportunity in Guyana, return capital to shareholders and reduce debt, while at the same time significantly lowering our cash unit costs and bolstering our company’s balance sheet.”
Pandion Energy, headquartered in Oslo, was formed to affect a management buy-out of Tullow Oil Plc’s Norwegian subsidiary, Tullow Oil Norge. The deal included several NCS interests: PL 636 (Cara discovery), PL 651, PL 689, PL 746 S, PL 750, PL 750 B, PL 774, PL 774 B, PL 776, PL 786, PL 791 and PL 826
In February this year, Kerogen Capital said it planned to commit up to $300 million to back Pandion Energy, as the company pursues exploration, appraisal and development opportunities on the Norwegian Continental Shelf through acquisitions, farm ins and licensing rounds.
Kerogen has already made an initial commitment of $100 million, however, the price tag may increase to up to $300 million, as Pandion’s portfolio develops, Kerogen said at the time.