Spain-based Repsol and US company Armstrong have signed an agreement to strategically restructure their interests in their Alaska North Slope exploration and development venture.
The structural agreement includes cash combination, operational control, drilling commitments and contractual adjustments with monetary considerations of more than $800m.
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The venture has drilled 16 wildcat and appraisal wells on the North Slope over the last four years.
Under the restructured agreement, Armstrong has acquired a 15% working interest in addition to its existing 30% in the initial development area near the Colville River Delta located between the 3.5 billion barrel Kuparuk River Field and the 700+ million barrel Alpine Field.
The company also has the option of acquiring an extra 6% and assuming operatorship in the development area.
In addition, Armstrong bought an extra 45% working interest and operatorship in the jointly-owned exploratory lands.
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By GlobalDataAfter exercising its 6% option, Armstrong is expected to own 51% and Repsol would own 49% in the development area.
In the exploration area, Armstrong will own 75% and Repsol 25%.
For Repsol, the latest transaction aligns the Alaska project with its new strategic plan to integrate its Talisman assets that were purchased recently, into its portfolio.
The transaction will enable Armstrong focus on activities on the North Slope.
Armstrong Oil & Gas president Bill Armstrong said: "Armstrong and Repsol’s North Slope project is representative of the new movement in Alaska, where smaller independents work and operate in areas previously dominated by major oil companies.
"As an example, the two most recent developments on the North Slope are operated by independents: Oooguruk Field developed by Pioneer Natural Resources and the Nikaitchuq Field developed by ENI."
