Asset A&D

OKEA Farms in to the Calypso Prospect in the Norwegian Sea

By Shriya Bhargava
September 26, 2020
2 minutes read
Norway Northern Lights

Oslo-listed E&P company OKEA ASA has entered into a Sales and Purchase Agreement with a subsidiary of Neptune Energy Group Ltd. to acquire a 30% interest in exploration license PL 938 located in the Norwegian Sea. The license contains the undrilled Calypso prospect, which is estimated to contain up to 37 million barrels (MMbbls) of oil.

In exchange for the 30% interest in the license, OKEA will assume a portion of Neptune’s costs for drilling of an exploration well on the prospect, expected to commence in late 2021 or 2022. Upon completion, Neptune will retain a 30% operated interest in the license, while license partners Vår Energi AS and ConocoPhillips will retain a 20% interest each.

PL 938 (Block 6407/8) covers an area of approximately 56 sq. km in the Norwegian Sea, located 10 km north-west of the OKEA-operated Draugen field and directly north of the Bauge and Hyme fields. The current work program includes the drilling of an exploration well on the Calypso prospect.

“As operator of Draugen we are keen to find resources in the nearby area with the potential to be developed through our existing infrastructure and Calypso fits this exploration strategy well. We look forward to working with the operator and other licensees to ensure an efficient exploration well and further activity in the license,” said Andrew McCann, Senior Vice President at OKEA.

OKEA is an independent oil & gas company based in Trondheim, Norway, and currently holds a portfolio of upstream interests across the Norwegian Continental Shelf (NCS). In June last year, the company completed an initial public offering, and Bangchak Corporation PCL, an integrated Thai energy company, became its largest shareholder. Bangchak currently holds a 46.3% stake in the company.

The completion of transaction remains subject to customary closing conditions, including approval by the Norwegian Ministry of Petroleum & Energy.

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