Norwegian oil and natural gas company Lime Petroleum has agreed to obtain a 17% stake in the PL740 in the Norwegian North Sea from oil and gas firms DNO Norge and OKEA.

Under the sale and purchase agreement, Lime Petroleum will acquire 10.72% and 6.27% interests in PL740 from DNO Norge and OKEA, respectively.

Currently, OKEA holds a 45.56% interest and DNO a 50% interest in the licence, while Norwegian operator M Vest Energy holds the remaining 4.44% stake.

Lime Petroleum said that the farm-in of 17% in PL740 will result in around four million barrels of oil equivalent (mmboe) contingent resources net to Lime.

The transaction is expected to be completed by the end of 2023 or early 2024, subject to certain customary conditions and governmental approvals.

Lime chief executive officer Lars Hübert said: “The Farm-in is a further extension of Lime’s strategy to build value in the company by adding reserves and production, following our acquisitions of interests in the producing Brage and Yme fields in 2021 and 2022, respectively. Through our participation in the Brage Field, we know the area very well.

“The Brasse Field development will have significant positive synergies with Brage, likely allowing the extension of Brage Field’s lifespan, adding to our cash-flow stream in the long term.

“We look forward to working closely with the Operator, OKEA, and the other partners in the field in the months and years to come.”

The Brasse Field is located in shallow water on the Norwegian Continental Shelf (NCS), just south of the Brage Field in the PL740, and is operated by OKEA.

According to the Norwegian Petroleum Directorate (NPD), Brasse was discovered in 2016 and appraised in 2016, 2017 and 2018, with a water depth of around 407ft.

In a recently published environmental impact study, OKEA reported that the field holds recoverable resources ranging between 21 and 29mmboe with 25 to 30% of gas.

The licence partners agreed to develop Brasse Field as a subsea tie-back to the Brage platform.

They are planning to submit a Plan for Development and Operation (PDO) to Norwegian authorities in early 2024, with production start-up expected in early 2027.