Statoil Agbami equity shares reduced

OE Staff
Friday, November 6, 2015

Statoil has received an expert calculation of revised tract participations for the Agbami field, offshore Nigeria.

Assuming implementation, this calculation will result in a reduction of 5.17% in Statoil’s equity interest in the Chevron-operated field from 20.21% to 15.04%.

Statoil previously initiated arbitration proceedings to set aside interim decisions made by the expert. By a decision received by Statoil on 4 November 2015, the arbitration tribunal has declined to set aside the expert's interim decisions.

Statoil is currently assessing its position in relation to the expert's decision and the decision of the arbitration tribunal.

Statoil has so far made an accrual of US$867 million (NOK 7.5 billion). Assuming implementation in accordance with the expert ruling, Statoil will have to compensate other equity owners at Agbami of about $184.9 million (NOK 1.6 billion) in addition to the accrual as of end Q3 2015. Eventual settlement of any imbalance amount will be made over time through cash-calls issued by the unit operator.

Total field reserves estimated at around 900 MMboe. Statoil expects equity production from Agbami 44,000 b/d in the plateau period. The project is Nigeria's largest deepwater development to date with water depths down to 1500m. The Agbami floating production vessels is the world's largest FPSO. The ship, with a storage capacity of about 2.2 MMbbl, will be on site for more than 20 years.

Categories: Deepwater Oil Africa

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