Norwegian oil and gas company OKEA has completed the acquisition of a 28% working interest in PL037 (Statfjord Area) from Equinor.
The transaction, which was first announced in March 2023, included an initial fixed consideration of $220m (Nkr2.24bn).
The Statfjord Area includes the Statfjord Unit, Statfjord Øst Unit, Statfjord Nord and Sygna Unit, with OKEA acquiring significant stakes in each.
With the deal, OKEA will acquire a 23.93% stake in the Statfjord Unit, a 28% stake in Statfjord Nord, a 14% stake in the Statfjord Øst Unit and a 15.4% stake in the Sygna Unit.
Initially, the deal was expected to close in November 2023 but was postponed after the updated information provided by Equinor indicated a reduction in 2P and 2C volumes of 10–15% over the lifetime of the acquired assets.
2P stands for proved and probable reserves while 2C stands for contingent resources.
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As the revised projections indicate a material reduction in value, OKEA anticipates recognising an impairment in the range of Nkr1.1bn to Nkr1.6bn in its fourth quarter 2023 financial statements.
OKEA has also agreed with Equinor to defer $60m of the purchase price until the end of January 2024.
OKEA CEO Svein Liknes said: “After a thorough process, we have concluded that completing the transaction represents the best way forward for OKEA.
“We remain fully committed to the continued execution of our growth strategy as a leading mid-to-late life operator on the Norwegian Continental Shelf and will work diligently with Equinor and the licence partners to develop the full potential of the Statfjord Area.”
In October 2023, OKEA announced the discovery of oil in the Norwegian North Sea.