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Faroe Petroleum has agreed to acquire a 10% non-operated interest in the East Foinaven field and a 0.5% interest in the West of Shetland pipeline system from Marubeni Oil & Gas (North Sea) Ltd.
The headline consideration for the acquisition of the interests is $32 million payable to Marubeni in cash.
The BP-operated East Foinaven field is located in blocks 204/24a and 25b in the Atlantic margin, 190 km West of Shetland.
The field has been developed as a subsea tie-back to the main Foinaven field and currently utilizes three production wells and two water injectors from a single subsea production manifold. Two shuttle tankers offload Foinaven crude from the Foinaven FPSO, which is then shipped directly to refineries.
Gas is exported via a 10-in pipeline to the West of Shetlands pipeline system, which transports gas to the Sullom Voe terminal in the Shetland Islands. Gas is then transported to the Magnus Field via the East of Shetland pipeline system for use in the Magnus enhanced oil recovery scheme.
Remaining proved and probable reserves, as evaluated by Faroe Petroleum's reserves auditors Senergy (GB) Ltd., were 1.55 MMboe net to Faroe Petroleum. The average 2012 projected gross production rate for the East Foinaven field is approximately 3,500 boe/d.