Norwegian energy company Det norske oljeselskap has signed an agreement with VNG Norge, a subsidiary of Germany-based Verbundnetz Gas, for the sale of shares in three production licenses off mid-Norway.
Det norske (DNO) is the operator and carries a majority ownership interest in all three licenses. This transaction reportedly confirms the value creation potential in the early exploration phase and the sale is part of DNO’s ongoing work to optimize its exploration portfolio.
VNG Norge will acquire a 30% interest in each of the Fongen and Struten exploration prospects. In these licenses, the partnerships have agreed to drill one exploration well, planned for 2009. As compensation, VNG will carry 30% of DNO’s drilling cost related to the two wells.
DNO has also sold a 20% interest in the Litjormen prospect to VNG, reducing its ownership from 50% to 30%. The company said that 3D seismic has been acquired for the license, but no firm decision to drill any exploration well has yet been made. The agreement is subject to approval by the Norwegian authorities.