Asset A&D

Aker BP and PGNiG Swap Norwegian Interests

By Shriya Bhargava
February 12, 2020
a minute read

Aker BP has entered into an agreement with PGNiG Upstream Norway AS, a subsidiary of Polish integrated energy company PGNiG SA, to swap its non-operated 3.3% interest in the Gina Krog field and an 11.9175% interest in Licence 127C, in exchange for a 5% operated interest in Licence 838 plus cash consideration of up to US$62 million. As a result of the transaction, Aker BP will hold a 35% interest in Licence 838 and 88.0825% in Licence 127C. Licence 838 contains the recent Shrek discovery located near the Aker BP operated Skarv field, and the transfer of operatorship to Aker BP will enable an efficient development of the discovery as a tie-back to the Skarv FPSO. Licence 127C contains the Alve Nord discovery and the Alve NE prospect, which is also located in the Skarv area. Aker BP plans to drill an exploration well in the licence in 2020. The cash consideration comprises of a firm payment of US$51 million upon closing and an additional payment of US$11 million contingent on a development of the Alve Nord discovery. The closing of the transaction remains subject to approval by the Norwegian authorities.

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