Aker BP has agreed to buy Equinor's 77.8% stake in Norway’s King Lear gas and condensate discovery for $250 million in cash, the two companies said Oct. 15.
The North Sea discovery has estimated reserves of 77 million barrels of oil equivalents, and by connecting it to existing production facilities at the Ula Field, Aker BP expects the acquisition to add more than 100 million barrels in total.
“This [tie-in] will improve the capacity utilization at the Ula facilities and provide significant additional volumes of injection gas to support increased oil recovery,” the company said.
State-controlled Equinor said the stake sale was part of a process to streamline its Norwegian portfolio.
“By doing so we unlock capital for investment in projects that offer higher returns for Equinor,” said Jez Averty, Equinor’s senior vice-president for operations in the southern North Sea.
The remaining 22.2% stake in King Lear is held by Total. The transaction is subject to approval by Norwegian authorities.
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.