Equinor has agreed to sell its stakes in two oil and gas fields, in the Norwegian North Sea, to private equity-backed Sval Energi for a cash consideration of $1bn.
Sval Energi will acquire Equinor’s full stake in the Greater Ekofisk Area, which comprises three fields, and the Tor Unit, and a 19% stake in the Martin Linge field.
Equinor owns a 7.6% stake in the Ekofisk area licences PL018, PL018B, and PL275 that includes the Ekofisk, Eldfisk, and Embla fields, and a 6.6% interest in the Tor Unit.
As part of the deal, Equinor will also sell its 18% stake in the Norpipe oil pipeline that transports crude oil onshore from the Greater Ekofisk Area.
Upon the completion of the deal, Equinor will own a 51% operatorship stake in the Martin Linge field and will have no stake in the Greater Ekofisk Area.
The agreement also includes a contingent payment that is linked to the prices of oil and gas in 2022 and 2023.
Equinor South Norway exploration production senior vice-president Rune Nedregaard said: “With this transaction we are optimising our oil and gas portfolio in line with Equinor’s strategy, capturing value from several of our assets.
“Ekofisk has played an important role in Norway and Equinor’s oil and gas journey as the first producing field on the Norwegian Continental Shelf.
“The Greater Ekofisk Area is an area where Equinor has limited participation, and we have therefore decided to sell our position in the area during a period of high prices, and to redirect capital to other core areas for the business.”
Sval Energi expects the deal to add 30,000 barrels of oil equivalent per day to its portfolio.
The transaction is scheduled to be completed during the second half of this year and is subject to customary government and licence approvals.
Last month, Equinor announced that it had made a significant oil and gas discovery in the Kveikje prospect, in the Norwegian North Sea.