Sequa Petroleum‘s wholly owned subsidiary Tellus Petroleum has terminated its $602m acquisition of Norwegian offshore field interests from Wintershall due to poor market conditions.

In June, the company agreed to buy 20% interest in Knarr field, 4.5% in Veslefrikk, 6.4615% in Ivar Aasen and 10% in Yme field.

Tellus Petroleum had also agreed to acquire a 15% interest in the Wintershall-operated Maria development, as well as seven exploration licences.

Wintershall said in a statement that following a request from Tellus Petroleum, the company has agreed to release it from its obligations under the sales and purchase agreement announced on 18 June.

The divestment also included ownership interests in the Utsira High Gas Pipeline (3.8769%), the Edvard Grieg Oil Pipeline (2.5846%), and the Knarr Gas Pipeline (20%).

From the total deal price, $40m was subject to the Maria Field development being approved by the Norwegian Ministry of Petroleum and Energy.

Reuters reported Sequa Petroleum saying that it was reconsidering a deal to acquire a 0.6% stake in the Ivar Aasen field from Austria-based OMV for $5.2m.

Norway-based Tellus Petroleum aims to acquire a portfolio of interests in small and medium sized producing fields and discoveries on the Norwegian Continental Shelf.

Image: Wintershall will reduce its share in the Maria Development by 15%. Photo: © Wintershall Holding GmbH.