The Norwegian oil and gas companies OKEA and DNO Norge have signed a deal for OKEA to enter the offshore license in Norway containing the Brasse discovery, with a 50% stake effective January 1, 2023.
Following the transaction, DNO and OKEA will each hold 50% WI in the (PL740) .
The new partnership wants to conduct a fast-track, low cost review to assess whether a value accretive development concept can be found for the
Brasse discovery. Brasse is located only 13 km from the OKEA-run Brage field and is thought to have 30 mmboe of recoverable volumes.
The transaction is subject to extension of the license and approval by the Ministry of Petroleum and Energy. The transaction itself is executed at zero cost to OKEA.
Brasse is an oil and gas discovery in the northern North Sea, 13 kilometers south of the Brage field and 13 kilometers southeast of the Oseberg Field Center. The water depth is 120 meters.
The discovery was made in 2016 and delineated by four wells in the period from 2017 to 2019. The reservoir contains oil with a gas cap in the Upper Jurassic Sognefjord Formation.
The plan for development and operation (PDO) had been expected to be submitted in 2022, but DNO recently said, that recent changes in the temporary petroleum tax system and industry cost pressures had significantly weakened the project’s economics, and that the PDO would not be submitted by year end 2022.
DNO is considering its options to commercialize the Brasse oil and gas discovery, including through a modified development concept, the company said on December 19.