Lundin Petroleum has signed agreements to acquire Statoil Norway’s entire 15% interest in the Edvard Grieg field in PL338 located offshore Norway.

As part of the transaction, Lundin Norway will also acquire a 9% stake in the Edvard Grieg oil pipeline and a 6% interest in the Utsira High gas pipeline.

In addition, Lundin Petroleum will receive $68m from Statoil.

The transaction will give Lundin access to additional reserves and production in the Utsira High core area.

The Edvard Grieg field was discovered by Lundin Norway in 2007.

Following the deal, Statoil will further strengthen its indirect exposure to various assets such as Edvard Grieg, Johan Sverdrup.

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Johan Sverdrup project has a break-even of less than $30 per barrel for phase 1.

"The increased shareholding in Lundin Petroleum will be an important long-term industrial investment for Statoil."

Upon completion of the transaction, both Lundin and Statoil will continue to operate independently, and act as separate entities in all licences on the Norwegian Continental Shelf (NCS).

Statoil executive vice-president and CFO Hans Jakob Hegge said: "The increased shareholding in Lundin Petroleum will be an important long-term industrial investment for Statoil."

The transaction is subject to customary approval of Norwegian Government authorities, and is expected to complete by 30 June 2016 and production during the second half of 2016 is set to increase by 10,000boepd.

Lundin Petroleum chairman Ian Lundin said: "This acquisition further consolidates Lundin Petroleum’s position in the Utsira High, an area which has provided the cornerstone for Lundin Petroleum’s production and resource growth over the last decade.

"The increased cash flow and production that comes with this transaction will ensure Lundin Petroleum remains the leading independent E&P company in Europe."

Image: Statoil executive vice-president and CFO Hans Jakob Hegge. Photo: © Statoil.