Statoil ASA (NYSE: STO) is selling its stake in a North Sea field to Lundin Petroleum AB in return for a larger stake in the Swedish oil firm, it said on May 3.
Statoil will divest its 15% stake in the Edvard Grieg Field, a 9% stake in the Edvard Grieg oil pipeline and a 6% stake in the Utsira High Gas pipeline. In addition Statoil will pay $68 million in cash to Lundin.
In return Statoil will up its stake in Lundin to 20.1% from 11.9%, the Norwegian company said. If the transaction goes through Statoil will be the second-largest shareholder in the Swedish firm after Lorito Holdings' 24.5% stake.
The deal boosts Lundin's resources and cash flow at a time when the industry is readjusting to a plunge in crude prices, while Statoil gains more exposure to key parts of the Norwegian continental shelf such as the giant Johan Sverdrup Field.
"I am pleased to say that this transaction was the initiative of Lundin Petroleum," Lundin Petroleum chief executive Alex Schneiter said in a separate statement.
"We saw a unique win-win opportunity to acquire a direct interest in a world class asset such as Edvard Grieg for an increased shareholding in Lundin Petroleum by Statoil," he added.
Lundin said it saw production in the second half this year rising by 10,000 barrels of oil equivalents per day (boe/d) resulting in a higher production guidance of 65,000 to 75,000 bo/d this year up from a previous guidance of 60,000 to 70,000 boe/d, assuming the deal is completed by June 30.
It also raised its 2016 development capex outlook to $970 million from $935 million.
The Edvard Grieg Field in the Norwegian North Sea started production in November and has estimated reserves of 187 MMboe. Other partners in the field include BASF's oil and gas subsidiary Wintershall AG and Austria's OMV AG.
Statoil has no plan to further increase its shareholding in Lundin Petroleum, it said.
Lundin shares traded 0.3% higher for the day at (7:32 GMT), while those of Statoil rose by 0.5%. European oil and gas shares meanwhile fell by 1% on average.
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