The Norwegian oil and gas company will take a 20% stake in the PL 891 license located in the Haltenbanken area of the Norwegian Sea

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Image: Pandion Energy to take 20% stake in PL 891 license in Norwegian Sea. Photo: courtesy of C Morrison/Pixabay.

Pandion Energy has agreed to acquire a stake of 20% in the PL 891 license in the Norwegian Sea from ConocoPhillips Skandinavia for an undisclosed price.

The PL 891 license, which contains the Slagugle prospect, is contained in the Haltenbanken area of the Norwegian Sea in the 6507/5, 6 and 8 blocks.

ConocoPhillips bagged the offshore license during the 2016 APA round and prior to the farmout with Pandion Energy, had a 100% stake.

Subject to receiving approval from the Norwegian Ministry of Petroleum and Energy, ConocoPhillips will make preparations for the drilling of the Slagugle prospect in 2020 or 2021.

Pandion Energy CEO Jan Christian Ellefsen said: “With this farm-in we commit to our fourth exploration well in less than a year, demonstrating the importance of exploration and appraisal activities in Pandion Energy’s growth strategy.

“Once again we have identified and secured an attractive exploration opportunity close to existing fields and discoveries in the Norwegian Sea. Together with the upcoming wells in PL 842 (Godalen) and PL 263 D & E (Appolonia), we now have a portfolio of three exploration wells in this prolific part of the Norwegian continental shelf.”

The closing of the deal is subject to approval by the Norwegian Ministry of Petroleum and Energy and other customary conditions.

Headquartered in Oslo, Pandion Energy, which is focused on the Norwegian continental shelf, was formed in 2016 to undertake a management buyout of Tullow Oil Norge’s operational platform and licenses.

Pandion Energy recently secured approval for Duva development

Last month, Pandion Energy said that the Norwegian ministry approved the plan for development and operation (PDO) for the Duva development located in the PL 636 license in the Norwegian Sea. The Norwegian oil and gas company, which holds a stake of 20% in PL 636, expects the first production from the Duva development in early 2021.

In April 2019, the company signed a deal with Equinor Energy to acquire 20% stakes in PL 263 D and PL 263 E licenses located in the Haltenbanken area, which contain the Appolonia prospect.