Norwegian oil and gas company OKEA has agreed to acquire a 28% stake in offshore block PL037, in Statfjord Area, offshore Norway, from Equinor for an initial fixed consideration of $220 million.
The Statfjord Area comprises the Statfjord Unit, Statfjord Øst Unit, Statfjord Nord and Sygna Unit. The Statfjord Unit development covers the Statfjord A, B and C concrete gravity-based platforms. The other fields are subsea developments tied back to the main field platforms.
Apart from the fixed payment, the deal contains contingent payment terms applicable for 2023-25 for certain thresholds of realized oil and gas prices.
The purchase adds to OKEA's production in 2023 of 13,000 – 15,000 boepd and expected to grow to 16,000 – 20,000 boepd in 2024
Equinor will retain responsibility for 100% of OKEA’s share of total decommissioning costs related to Statfjord A platform.
OKEA will be liable for its share of costs related to the decommissioning of Statfjord B and C platforms, however, Equinor retains responsibility for decommissioning costs relating to any full or partial removal of Statfjord B and C gravity-based structures, should it be required,
OKEA said that the majority of the purchasing price, based on current forward prices, would be covered by cash flows generated by the assets prior to completion.
OKEA CEO, Svein J. Liknes said:"We are very pleased to announce this transaction with Equinor which represents another significant step in delivering value-accretive growth in line with our strategy. Through this acquisition, we are increasing production to well above 40,000 boepd in 2024, nearly three times higher than production at the time of launching our growth strategy in the fall of 2021. In addition, we are diversifying our asset base further without the need for any new financing. We look forward to initiating a fruitful cooperation with Equinor and their FLX team and continuing to create value as a leading mid- to late-life operator.”
The transaction is conditional upon Norwegian governmental approval and is expected to be completed in Q4 2023.
"The transaction matches OKEA’s strategy as a leading mid to late-life NCS operator focused on growth, value creation and capital discipline. The significant increase in production, reserves and resources, adds scale and diversification and enhances robustness in the portfolio. In addition, the transaction represents the initiation of a partnership with a dedicated and competent operator in the Equinor FLX team which is committed to safe operations, increased recovery, and reducing costs and CO2 emissions. OKEA will contribute with management and operating experience," OKEA said.
Following the transaction, the field licensees (partners) will be as follows:
Statfjord Unit: Equinor Energy AS (40,17028%), Okea ASA (23,93123%), Vår Energi AS (21,36717%), Equinor UK Ltd (14.53131%)
Statfjord Øst Unit: Equinor Energy AS (29,25%), Petoro AS (30%), Vår Energi AS (20,55%), Okea ASA (14,0%), Idemitsu Petroleum Norge AS (4,8%), Wintershall DEA Norge AS (1,4%)
Statfjord Nord: Petoro AS (30%), Vår Energi AS (25%), Okea ASA (28,0%), Equinor Energy AS (17,0%)
Sygna Unit: Equinor Energy AS (28,025%), Petoro AS (30,0%), Vår Energi AS (20,995%), Okea ASA (15,4%), Idemitsu Petroleum Norge AS (4,32%), Wintershall DEA Norge AS (1,26%)
Subscribe
