ONE-Dyas Norge will acquire 10% in the Nova field development project for $59.5m (£48.8m) plus customary working capital adjustments on completion
Scottish oil and gas firm Cairn Energy has agreed to sell a minority stake in its Nova field development project off the coast of Norway, to ONE-Dyas Norge.
Under the terms of the deal, ONE-Dyas Norge will acquire 10% in the project for $59.5m plus customary working capital adjustments on completion.
Upon completion of the transaction, Cairn will have a 10% participating interest in the Nova development and reduce its capital expenditure by $110m (£90.3m) by the end of 2021 in the Nova area.
Proceeds from the sale will be used by Cairn to fund group exploration and development activities.
The Nova field is located in the production licences PL 418 in the north-eastern part of the Norwegian North Sea. It is estimated to contain recoverable reserves of around 80 million barrels of oil equivalent (boe).
Following the completion of the agreement, the Nova field development partners include Wintershall DEA (Operator) with a 45% stake, Spirit Energy with 20% interest, Edison with a 15% stake, Cairn with 10% interest, and One-Dyas holding the remaining 10% stake.
The transaction is subject to written consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party approvals.
The partners have submitted the plan for development and operation (PDO) for the Nova field to the Ministry of Petroleum and Energy in May 2018 with the first oil targeted in 2021.
In October 2018, the Wintershall Norge and its partners have secured approval from Norway’s Ministry of Petroleum and Energy for the PDO of the field.
Nova field development to cost £1bn
Estimated to cost around €1.1bn (£1bn), the Nova field development involves two subsea templates located on the ocean floor tied back to the nearby Gjøa platform for processing and export. The Gjøa platform is operated by Neptune Energy.
The platform will also supply lift gas to the field and water injection for pressure support.
The field will receive power from onshore through the Gjøa platform. After Vega and Maria in the Norwegian Sea, Nova will be the third subsea field operated by Wintershall.