Statoil Increases NCS Equity Through Tullow Deals

Statoil has agreed terms with Tullow Norge AS to increase its equity in four licenses on the Norwegian continental shelf (NCS), including the Wisting discovery in the Barents Sea.

Under the agreement, Statoil will receive additional 20 percent interests in the PL537 Wisting, PL855 and PL843 licenses. The Norwegian oil and gas firm will also acquire a 40 percent interest in PL695 located in the Tromsøflaket area. The fee for the transaction, which is contingent on the approval of the relevant authorities, was not revealed by either company, although FirstEnergy Capital revealed that it is likely to include firm and contingent elements.

Through this transaction Statoil will become the biggest equity holder in the Wisting discovery, so far the only big discovery in the Hoop area of the Barents Sea. The Norwegian Petroleum Directorate estimates the Wisting discovery to contain 241 million barrels of oil equivalent of recoverable resources.

“This transaction reflects our strong belief in the exploration potential on the Norwegian continental shelf and our commitment to create value in the Barents Sea,” Jez Averty, Statoil’s senior vice president for exploration in Norway and UK, said.

“We wish to contribute with our experience, competence and technology to ensure an efficient and profitable development of the Wisting-discovery,” he added.

The market reaction to the deal between Statoil and Tullow was described as neutral by FirstEnergy Capital.

“Given the depressed status of the asset market, the transaction between Tullow and Statoil commands probably an implied value below what we currently carry,” said FirstEnergy in a brief research note sent to Rigzone.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Scottish Labour Says Oil, Gas Must Be ... (Jul 7)
 -  Top 10 Highest Paying Oil Jobs for Gra... (Jul 7)
 -  OCA Invites Unions for Fresh Talks (Jul 6)
 -  Total, NIOC Sign South Pars Developmen... (Jul 4)
 -  BB-1 Described as 'Key Well' (Jul 3)


Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Sr Advising Engineer - Tech Development
Expertise: Business Development|IT - Software Development
Location: Houston, TX
 
Business Development Manager
Expertise: Business Development|Construction Manager|Marketing
Location: Salt Lake City, UT
 
Project Manager II
Expertise: Estimating|Project Controls|Project Management
Location: Hayward, CA
 
search for more jobs

Brent Crude Oil : $50.2/BBL 3.29%
Light Crude Oil : $47.89/BBL 3.34%
Natural Gas : $2.94/MMBtu 1.37%
Updated in last 24 hours