Norway's Aker BP has agreed to divest a 10% stake in the Valhall and Hod fields to new firm Pandion Energy.
The move comes shortly after Aker BP acquired Hess Norge, which gave it 100% ownership in Valhall and Hod, and comes as Aker BP is eying investment in the field to add 500 MMboe of production.
Aker BP is planning to submit a Plan for Development and Operation for the Valhall Flank West project late 2017, with estimated first oil in 2020. In addition, Aker BP is maturing a number of additional projects in the area, including the North and South Flank projects.
Early January 2017, Valhall and Hod passed one billion barrels of oil equivalents produced, which is more than three times the volume expected at the opening of the field in 1982. The ambition is to produce a further 500 MMboe.
Pandion Energy, founded in November 2016, is a private oil and gas company focusing on the Norwegian Continental Shelf (NCS).
The private equity (Kerogen Capital) backed company prequalified as a licensee on the NCS in June this year.
The Valhall field centre consists of six separate steel platforms for living quarters, drilling, production, water injection, and a combined process- and hotel platform. Two unmanned and remotely operated flank platforms (North and South) are about 6km north and south of the field centre. The Hod field is developed with an unmanned wellhead platform, located 13km south of Valhall, and is remotely operated from the Valhall field centre. All wells on the Hod platform are currently shut-in and awaiting plugging and abandonment. The Hod reservoir is now being produced from wells drilled from the Valhall South Flank platform.
CEO of Aker BP, Karl Johnny Hersvik said: "After we announced the Hess transaction, we have seen strong interest to partner with Aker BP in the Valhall area. Through this transaction, we get a partner that shares our ambition of developing the upside potential in these fields."
The deal is subject to regulatory approval. Closing is expected by the end of 2017.
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