Norwegian oil and gas company OKEA has entered into agreement with Lime Petroleum, a subsidiary of Rex International, to sell its stake in the Yme field for $15.6 million, exiting the producing field the south-eastern part of Norwegian North Sea.
OKEA sold its 15% working interest in the Yme field to Lime, which increased its share from 10% to 25%. Effective date of the transaction is January 1, 2024 with expected closing before year-end 2024.
In addition, Lime will pay OKEA a post-tax consideration of $9.2 million in 2027 which will be repaid to Lime in four 25% tranches upon completion of four pre-defined stages of abandonment of the field.
All related decommissioning costs to be transferred to Lime, the company said.
Repsol Norge is the operator of the Yme field, with 55%, along with partners PGNiG Upstream Norway 20%, and with the most recent share acquisition Lime with 25% stake.
The Yme Field is located in PL 316 and PL 316B on the Norwegian Continental Shelf. According to the Norwegian Petroleum Directorate, Yme is a field in the south-eastern part of the Norwegian sector of the North Sea, 130 kilometres northeast of the Ula field.
The water depth is 100 metres. The field comprises two separate main structures, Gamma and Beta, which are 12 kilometres apart.
Yme was discovered in 1987, and production started in 1996. In 2001, production ceased because operation of the field was no longer regarded as profitable. The Yme Field was redeveloped and put into production in 2021, after a 20-year hiatus.
The Yme Field is currently producing between gross 20,000 and 25,000 boepd, following the completion of the drilling of development wells in the second quarter of 2024.
An Independent Qualified Persons Report (QPR) by AGR Energy Services, dated March 13, 2024, attributed 39.47 million barrels of 2P reserves to the Yme Field as of December 31, 2023.
“Following several years as a partner in the Yme licence, we have decided to exit a non-core area with a relatively small holding. The divestment allows OKEA to focus financial and human resources in our core areas, and we are pleased to announce this transaction with Lime Petroleum to the mutual benefit of both parties,” said Svein J. Liknes, OKEA’s CEO.
“The Yme field has been on a good trajectory since Lime entered in 2022 and we are pleased to increase our stake, in line with our strategy to increase our reserves and resources base. We have a great relationship with the operator, Repsol, and are working closely with them to find additional value in Yme. We expect this latest Acquisition to add to Lime’s cash flow in the coming years,” added Lars B. Hübert, CEO of Lime.