Statoil and Wintershall complete offshore oil and gas asset swap
The agreement signed with the German oil and gas company Wintershall—which includes the divestment of Statoil's share of the Brage licences, a farm-down in Gjøa and Vega, and acquisition in the Edvard Grieg licence in the North Sea—has been completed.
The consideration to be paid to Statoil is USD 1.45 billion. This amount includes a contingent consideration of USD 100 million relating to production on Vega.
"This transaction demonstrates how active portfolio management can realise value and provide opportunities for long-term growth and for us to boost our financial flexibility," says Øystein Michelsen of Statoil, executive vice president for Development and Production Norway.
By acquiring a share in the Edvard Grieg licence, Statoil will enhance its position as the biggest player on the Utsira High formation by owning shares in all the area's discoveries: Johan Sverdrup, Edvard Grieg, Gina Krog and Ivar Aasen.
"The Norwegian continental shelf (NCS) is, and will continue to be, the backbone of our company. By developing new fields and increasing oil recovery, it is our ambition to continue producing more than 1.4 million barrels of oil equivalent per day from the NCS in 2020," says Michelsen.
As part of this agreement, signed on 22 October last year, Wintershall takes over operatorship of the Brage field. The transfer of operatorship is expected to take place on 30 September, though Statoil will support Wintershall by hiring out personnel and providing other assistance for up to 18 months after 1 October.
"We've worked well together with Wintershall to ensure that the transfer of operatorship proceeds in a safe and efficient manner," says Michelsen.
As part of the deal, Statoil and Wintershall have also signed a letter of intent relating to collaboration within the areas of improved oil recovery and research into unconventional hydrocarbon deposits
Source: Statoil / Oil & Gas Journal / PennEnergy
July 31, 2013
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Asset swap between Wintershall and Statoil completed
Oil and gas production in Norway rises from around 3,000 barrels
to almost 40,000 barrels of oil equivalent (boe) per day
Brage field: First platform operatorship by Wintershall in Norway
planned as of October 1, 2013
Wintershall is increasing its production in Norway with today’s financial closing of the asset swap with Statoil ASA. With the transfer of shares in the fields Brage, Vega and Gjøa (Brage: 32.7%, Vega: 30% and Gjøa: 15%), Wintershall raises its production in Norway from approximately 3,000 boe to almost 40,000 boe per day. Effective date of the transaction is January 1, 2013. In addition, with Brage, Wintershall shall take over the operatorship of a major production platform on the Norwegian Continental Shelf for the first time. The transfer of the operatorship from Statoil to Wintershall is planned for October 1, 2013.
“Through the cooperation with the Norwegian company Statoil we are progressing our strategy of growing with our activities at the source,” said Rainer Seele, CEO of Wintershall.
In return, Statoil receives a 15% share in the development project Edvard Grieg from Wintershall and a financial compensation of $ 1.35 billion. The compensation payment is being offset by the earnings of the share in production from the fields Brage, Vega and Gjøa since January 1, 2013. An additional payment of up to $ 100 million will be paid by Wintershall contingent on the successful future development of the Vega field.
“With Brage we will launch a Wintershall-operated production expansion in Norway. That is an important step for us and strengthens our role as a responsible partner for oil and gas in Norway,” said Bernd Schrimpf, Managing Director of Wintershall Norge.
Adding value through strategic partnership
The two companies also agreed to conduct joint research activities to increase oil recovery (EOR – Enhanced Oil Recovery) as part of the transaction and to examine the offshore application of the innovative technology “Schizophyllan” developed by Wintershall and BASF. Wintershall and Statoil also wish to work together in the area of research into unconventional hydrocarbon deposits in Germany and in other regions.
Source: Statoil / Wintershall
July 31, 2013
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