Norwegian oil firm Statoil has signed an agreement to sell 15% interest in the $4bn Edvard Grieg field located in production license (PL) 338, in the Utsira High area of the Norwegian North Sea, to Swedish oil firm Lundin Petroleum.
Under the terms of the deal, Statoil will sell the interest in the field in exchange for an increased shareholding in the Swedish firm.
Lundin will also acquire 9% interest in the Edvard Grieg Oil pipeline and a 6% interest in the Utsira High Gas pipeline. Additionally, $68m cash will be paid to Lundin Petroleum, as part of the deal.
Upon completion of the deal, which is subject to customary approval of the Norwegian government authorities, Statoil will increase its stake in Lundin Petroleum from 11.93% to 20.1%.
Statoil expects the deal to increase its exposure to core field development projects and growth assets on Norwegian Continental Shelf (NCS), including Johan Sverdrup and Edvard Grieg.
Statoil executive vice-president and CFO Hans Jakob Hegge said: "The increased shareholding in Lundin Petroleum will be an important long term industrial investment for Statoil."
The acquisition is a part of Lundin Petroleum’s plan to secure access to additional high quality reserves, production and cash flow in the Utsira High core area.
Besides operating independently, Statoil and Lundin will act as separate entities in all licenses on the NCS.
The Edvard Grieg field is estimated to hold gross 2P reserves of 187 million barrels of oil equivalents.
Prior to the deal, Lundin Petroleum subsidiary Lundin Norway operated PL338 with a 50% stake, while OMV Norge owned 20% interest. Other partners include Statoil and Wintershall Norge with 15% interest each.
Image: The Edvard Grieg field is estimated to hold gross 2P reserves of 187 million barrels of oil equivalents. Photo: courtesy of Wintershall Holding GmbH.