Statoil To Increase Lundin Stake
Statoil has agreed to divest its entire 15% stake in the Edvard Grieg oil and gas field offshore Norway to Sweden’s Lundin Petroleum in exchange for an increased shareholding in the latter. Under the agreement announced May 3, Statoil’s equity stake in Lundin will increase from 11.93% to 20.1%.
Statoil said the transaction was initiated by Lundin; it noted that the two will continue to operate independently, but that Statoil will remain supportive of Lundin’s management and strategy.
The transaction also includes divestment by Statoil of a 9% interest in the Edvard Grieg oil pipeline and a 6% interest in the Utsira High Gas pipeline, plus $68mn cash to Lundin Petroleum.
Statoil announced the acquisition of its original 11.93% stake on January 14 2016. Both firms are partners in a number of offshore Norway fields, so the move by Statoil bolsters Lundin’s cashflow at a time of low oil prices, while providing upside to Statoil through Lundin’s future projects.
Edvard Grieg started production in November 2015. Gross plateau production of 100,000 boe/d is expected in 2H 2016. The North Sea field has 206mn boe of gross 2P reserves.
Separately, Statoil on May 2 agreed to divest its operated Marcellus shale gas assets in West Virginia, which produced 9,300 boe/d in 1Q 2016, to US firm EQT Corporation for $407mn. The deal is expected to close in July 2016. Statoil retains its operated properties in Ohio and its non-operated Marcellus positions.
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Statoil flew its flags at half-mast on May 2 in mourning for 13 people killed in a helicopter crash on April 29 near Bergen. No-one survived. Most of the dead were from Halliburton, Aker and helicopter firm CHC; one was a Statoil employee.
Mark Smedley