Equinor sells assets in Ekofisk Area and share in Martin Linge
Published by Emily Thomas,
Equinor and Sval Energi have entered into an agreement for the sale of Equinor’s non-operated share in the Greater Ekofisk Area and a minority share in Martin Linge (19%).
The agreement includes 7.604% of Ekofisk area licenses PL018, PL018B and PL275 (including the Ekofisk, Eldfisk and Embla fields, and 6.63922% in the Tor Unit).
With this agreement, Equinor will no longer have any ownership interests in the Greater Ekofisk Area but will retain a 51% ownership share in Martin Linge and continue as the operator of the field.
The deal also includes the sale of Equinor’s interest in Norpipe Oil AS (18.5%), part of the infrastructure transporting oil from the Greater Ekofisk Area to land.
The agreement includes a cash consideration of US$1 billion and a contingent payment structure linked to realised oil and gas prices for both assets for 2022 and 2023.
“With this transaction we are optimising our oil and gas portfolio in line with Equinor’s strategy, capturing value from several of our assets”, said Rune Nedregaard, Senior Vice President Exploration Production South Norway.
“Ekofisk has played an important role in Norway and Equinor’s oil and gas journey as the first producing field on the Norwegian Continental Shelf. The Greater Ekofisk Area is an area where Equinor has limited participation, and we have therefore decided to sell our position in the area during a period of high prices and to redirect capital to other core areas for the business,” says Nedregaard.
“We are also pleased to announce that the deal includes bringing in Sval Energi as a partner to the Martin Linge field, creating further value from this asset. Martin Linge started production in June 2021 and is now producing very efficiently. We are looking forward to collaborating further with Sval Energi to create more value from Martin Linge going forward.”
The closing of the transaction is subject to customary government and license approvals and is expected to be completed during the second half of 2022.<
Read the latest issue of Oilfield Technology in full for free: Spring 2022
Oilfield Technology’s first issue of 2022 begins with analysis from Wood Mackenzie on the disconnect between surging oil prices and US oil production growth and investment. The rest of the issue is dedicated to features covering sand removal technology, dissolvable frac plug technology, digitalisation of offshore operations, annular intervention, oilfield chemicals, subsea compression systems and smart instrument measurement.
Exclusive contributions come from TETRA Technologies, NOV, Archer, Expro, Locus Bio-Energy Solutions, AES Drilling Fluids, MAN Energy Solutions and Winters Instruments.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/10052022/equinor-sells-assets-in-ekofisk-area-and-share-in-martin-linge/
You might also like
CGG, TGS and BGP complete next phase of 3D multi-client survey offshore Suriname
Fast-track products for this recently completed Phase IV will be ready for review towards the middle of this year, with the final products for the entire programme available in late 2023.