Pandion Energy has signed an agreement to acquire a 10% interest in an area that comprises the Valhall and Hod fields in the southern Norwegian North Sea from Aker BP.

The proposed acquisition includes licences PL006B, PL033, and PL033B.

Since production began in 1982, the Valhall and Hod fields have produced more than one billion barrels of oil equivalent.

A new combined production and hotel platform was commissioned in 2013.

Pandion Energy CEO Jan Christian Ellefsen said: “By acquiring a 10% interest in Valhall, Pandion Energy gains exposure to a material production base with significant value-creation potential through near-term growth projects and substantial resource upside from field redevelopment, appraisal and exploration opportunities.”

The deal’s financial terms have not been disclosed.

The latest development comes after Aker BP signed an agreement in October this year to acquire Hess Norge, becoming the sole owner in the fields.

“Aker BP intends to produce at least an additional 500 million barrels of oil equivalent from the field.”

Aker BP CEO Karl Johnny Hersvik said: “After we announced the Hess transaction, we have seen strong interest to partner with Aker BP in the Valhall area.

“Through this transaction, we get a partner that shares our ambition of developing the upside potential in these fields.”

Currently, the Valhall field is producing around 37,500boepd.

Aker BP intends to produce at least an additional 500 million barrels of oil equivalent from the field.

Hod field comprises an unmanned wellhead platform 13km south of Valhall and is remotely operated from the Valhall field centre.

The company is expected to submit a plan for development and operation for the Valhall Flank West project later this year with the first oil scheduled for 2020.

The transaction is scheduled to be completed by the end of the year subject to customary government approval.