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    Statoil Buys Rest of Median Field Licence

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Summary

Statoil is buying JX Nippon’s 45% equity share in, and operatorship of, the UK licence for the Utgard field, which lies on both sides of the median line.

by: William Powell

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Natural Gas & LNG News, Corporate, Mergers & Acquisitions, Exploration & Production, Political, Ministries, Regulation, News By Country, , United Kingdom

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Statoil Buys Rest of Median Field Licence

Norway's oil major Statoil is buying JX Nippon’s 45% equity share in, and operatorship of, the UK licence for the Utgard field, which lies on both sides of the UK-Norwegian median line. It sees it as "a high priority project in a core area, deepening its presence on both the NCS and UKCS."
 

The deal makes Statoil the sole owner of UK licence P312. It bought out First Oil's 24% stake in October 2015 for $15mn; and it bought out Talisman Sinopec in December 2015. Statoil is the operator in NCS licence PL046 with a 62% holding. The two licences contain the field, of which 80% is on the Norwegian side.

Sleipner Field (Credit: Statoil)

Sleipner Field (Credit: Statoil)

Utgard, previously known as Alfa Sentral, is planned to be developed as a tie-back to existing infrastructure on the Norwegian Continental Shelf (NCS) for Sleipner, which Statoil operates.

A final investment decision for Utgard is planned before end-2016 with production start-up in 2020. Press reports say that Statoil is expecting to submit a development plan for the field in the summer and to spend around Nkr4.25bn ($500mn) developing it.

 

William Powell

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