Norwegian oil and gas exploration and production company Vår Energi has agreed to sell its interests in six North Sea licences to Mime Petroleum.

Under the agreement Mime Petroleum will acquire 10% ownership interests in the PL 001, PL 027, PL 027 C, PL 028, PL 028 S and PL 027 GS licences, which are currently 100% owned by Vår Energi.

The agreement will give Mime Petroleum a 7.4% ownership interest in the Ringhorne East field and a 10% ownership interest in the Balder and Ringhorne fields in the Norwegian continental shelf, which Vår Energi currently operates.

The parties have agreed not to disclose the value of the transaction. The agreement is subject to customary government approvals, with final closing scheduled to take place later in 2019.

Vår Energi CEO Kristin F. Kragseth said: “We are happy to finalise this agreement and to secure a new partner in the Balder and Ringhorne fields. The new partner will participate and invest in our ambitious joint plans to continue the economic development of the fields.

“We look forward to continuing a productive cooperation with Mime Petroleum for the revitalization of the Balder and Ringhorne area.”

Development of proven and additional mapped resources in the Balder and Ringhorne fields are key components of Vår Energi’s plans to produce about 500 million barrels of oil equivalent over the next five years.

Vår Energi plans to start exploration programmes in the area in 2020, which have the potential to increase the reserves in the area. The company also plans to drill 20 production wells across the Balder and Ringhorne fields.