Sequa Petroleum is dropping out of two deals to acquire stake in the Gina Krog and Ivar Aasen projects in the North Sea due to the current market conditions.
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Image of Ivar Aasen, from Det Norske. |
The company announced its decision not to progress with the acquisition deals that were inked through its subsidiary Tellus Petroleum.
The agreements include the US$172 million deal with Total of 15% interest in the Statoil-operated Gina Krog, which was already approved by the Norwegian government. Total entered into the agreement with Tellus in October 2015.
In March, Sequa said that it believed that Norway provides the world’s most secure and stable operating environment for oil and gas. The company had planned to finance the Gina Krog transaction with a combination of equity raised by Sequa and of debt raised by both the company and Tellus. Sequa has anticipated to close the deal this month.
In addition, Sequa is also backing out of the $5.5 million deal with OMV to takeover 0.554% interest with in Ivar Aasen.
In December, Sequa announced it was evaluating the Ivar Aasen deal, in light of its decision not to proceed in another deal with Wintershall to acquire four non-operated fields on the Norwegian Continental Shelf.
“The company has decided not to implement the consent received, which leaves the bond terms unchanged and trading in the bonds will be unblocked before close of trading on today’s date,” Sequa said in a statement.
With the cancelled deal, Ging Krog still stands as Statoil being the operator with 58.7% stake, with partners Total (30%), PGNiG (8%) and Det norske (3.3%).
Det norske is the operator of the Ivan Aasen with a 34.7862% interest. Partners include Statoil (41.4730%), Bayerngas Norge (12.3173%), Wintershall Norge (6.4651%), VNG Norge (3.0230%), Lundin Norway (1.3850%), and OMW Norge (0.5540%).
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