Equinor strengthens its position in the Norwegian Sea

December 5, 2018 08:04 CET
The Njord A platform
The Njord A platform in the Norwegian Sea. (Photo: Thomas Sola / Equinor ASA)

Equinor and Faroe Petroleum have agreed a number of transactions in the Norwegian Sea and the North Sea region of the Norwegian Continental Shelf (NCS).

These transactions are calibrated as a balanced swap when it comes to value with no cash consideration.

“The net effect of our agreement with Faroe is to upgrade Equinor’s portfolio in line with our updated roadmap for the NCS. We are strengthening our operated position in the prolific Njord area, which we believe continues to have considerable upside potential. We remain operator and majority equity holder in Alve which is produced via Norne, another important part of the Norwegian Sea for us. And we are reducing our exposure to non-core and partner-operated assets,” says Siri Espedal Kindem, Equinor’s senior vice president for Operations North.

The Njord field was in production from 1997 to 2016. The platform and the storage vessel have been brought to shore for an extensive upgrade. The field is planned to restart in 2020 and produce until 2040. The remaining reserves for the Njord and Hyme fields are estimated to be 175 million barrels of oil equivalent, while Bauge has a reserves estimate of 73 million barrels of oil equivalent.

The effective dates of the transactions are 1 January 2019 with closing subject to government approval.

Asset

Description

Equinor
share
before
transaction

Equinor
share
after
transaction

Operator

Njord

Redevelopment project

20%

27.5%

Equinor

Bauge, Hyme

Subsea tiebacks to Njord

35%

42.5%

Equinor

Vilje

In production

28.9%

-

AkerBP

Ringhorne East

In production

14.8%

-

Point

Marulk

In production

50%

33%

Eni

Alve

In production

85%

53%

Equinor

 

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