Lundin Norway has agreed to divest 39% of its stake in the Brynhild oil field in the Norwegian North Sea to existing partner CapeOmega for NOK774m ($92.3m).

The Lundin Petroleum’s subsidiary will retain operatorship of the offshore oilfield with a 51% stake after the completion of the transaction. CapeOmega in turn would raise its stake from 10 to 40%.

The amount paid by CapeOmega will also cover historic tax and uplift balances.

According to Lundin Petroleum, the deal will be closed following an approval from the Norwegian government and also on meeting of the company’s lender and approvals.

The Brynhild field, which produced its first oil in December 2014, was developed as a subsea tie-back oil field to the Haewene Brim FPSO on the Shell-operated Pierce field located on the UK continental shelf.

Discovered in 1992 by exploration well 7/7-2, the Brynhild field is located in licence PL148 in the southern portion of the North Sea. The offshore oil field is only 10km away from the border with the UK continental shelf, 38km north of the Pierce field and 55km northwest of the Ula field.

Its Subsea Production System (SPS) comprises a Riser Base Manifold (RBM) installed at the production ship and an integrated subsea manifold system installed on it.

The manifold system contains four well slots which were configured initially with three oil-producing wells alongside one water injection well.

Oil produced from the field is transported via a 38km long pipeline from its subsea template to the RBM.

The manifold mixes the oils from the Pierce and Brynhild fields and the blended oil is then exported through a dynamic riser to the production ship.

Image: Lundin to offload 39% its stake in Brynhild field. Photo: courtesy of Lundin Petroleum.