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.
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