The closing of the deal between Equinor and Shell Offshore follows approval from the US Bureau of Ocean Energy Management
Image: Equinor’s share in the Caesar Tonga oil field has increased from 23.55% to 46%. Photo: courtesy of D Thory from Pixabay.
Equinor has closed the previously announced acquisition of a 22.45% stake in the Caesar Tonga oil field in the US Gulf of Mexico from Shell Offshore for $965m (£795m) in cash.
The move follows approval from the US Bureau of Ocean Energy Management. The deal was signed in May 2019.
Equinor increases share in the Caesar Tonga oil field to 46%
With the latest acquisition, Equinor’s share in the field has increased from 23.55% to 46.00%, while operator Anadarko will have 33.75% interest and Chevron owns the remaining 20.25% stake.
Equinor’s current share of production from the Caesar Tonga oil field is 18,600 barrels of oil equivalent.
Equinor said in a statement: “This transaction demonstrates Equinor’s ambition to grow and strengthens the portfolio in the US Gulf of Mexico, now producing a total of more than 130,000 boe/day.”
Claimed to be one of the largest deepwater resources in the US Gulf of Mexico, the Caesar Tonga field is situated around 290km south-southwest of New Orleans in the Green Canyon area.
Production from the oil field is tied back through subsea equipment to Anadarko’s Constitution SPAR floating production facility.
The Caesar Tonga oil field, which was brought into production in early 2012, is spread over the GC683, GC726, GC727 and GC770 blocks at water depths of around 4,900ft.
Equinor North America offshore development and production international senior vice-president Christopher Golden earlier said: “Deepwater Gulf of Mexico forms an important part of Equinor’s portfolio. This deal will strengthen our position in this prolific basin and build on the recent discovery in the Blacktip well.
“Later this year we will be drilling the Equinor-operated Monument prospect, which has the potential to further develop our position in the Gulf of Mexico.”
Operating in the US Gulf of Mexico since 2005, Equinor has exploration prospects and interests in eight producing fields and two in development stage.