Equinor has signed an agreement with Aker BP to sell its 77.8% operated interest in the King Lear discovery for $250m in cash.
Located in the Ekofisk area on the Norwegian Continental Shelf (NCS), the King Lear is a gas and condensate discovery that was made in 1989.
Equinor southern North Sea operations senior vice president Jez Averty said: “This transaction is a further example of our strategy of capturing value from active portfolio management through the oil price cycles.
“We are divesting a low-priority asset in our NCS portfolio to a buyer who sees higher value. By doing so we unlock capital for investment in projects that offer higher returns for Equinor.”
According to data from the Norwegian Petroleum Directorate, net recoverable resources in the King Lear discovery are estimated to 77 million barrels oil equivalents (mmboe).
The acquisition is expected to result in a total resource addition of more than 100 mmboe to Aker BP, with the inclusion of the increased oil recovery potential from Ula. King Lear is located nearly 50km south of the Ula field centre.
Total E&P Norge will hold the remaining 22.2% stake in the King Lear discovery.
The transaction is subject to customary conditions, including partner and approval by Norwegian authorities.
Aker BP CEO Karl Johnny Hersvik said: “The King Lear discovery is one of the largest undeveloped discoveries on the Norwegian Continental Shelf, and represents an excellent opportunity for Aker BP. Our goal is to develop King Lear as a satellite to Ula.
“This will improve the capacity utilization at the Ula facilities and provide significant additional volumes of injection gas to support increased oil recovery from the Ula field.”
Recently, Equinor has agreed to buy a stake of 40% and operatorship of Chevron in the Rosebank project, an undeveloped field located on the UK Continental Shelf (UKCS), for an undisclosed price.
Discovered nearly 15 years ago, the Rosebank Field, which is located around 129km northwest of the Shetland Islands, is currently heading towards development.