License Area PL 292 incorporates blocks N6/3 and N15/12d. Block N6/3 contains the Pi oil and gas discovery and is adjacent to existing UK Central North Sea infrastructure, including the BG-operated Armada complex.
Under the transaction, BG will also acquire operatorship of the License Area by transfer effective from either 11 April 2005 or the partners' decision to drill a well, whichever date is the earlier.
Jon Wormley, Managing Director and Executive Vice President, North West Europe, said:
"This deal is further evidence of BG's determination to build a material business in the Norwegian North Sea, based on our existing expertise on the UK Continental Shelf. We are delighted to be working with our new partners, Lundin Petroleum, in this interesting new prospect."
The effective date for the transaction is January 1, 2004. From that date, BG will assume the costs and liabilities relating to the interest.
The transaction is subject to the approval of the Norwegian National Petroleum Directorate and the Ministry of Petroleum and Energy. Completion is expected in the fourth quarter of 2004.
In December 2003, BG was selected for the operatorship - and 100% ownership - of Blocks 1/2, 1/5 and 1/6 in Norway's first Predefined Areas licensing round. The intention is to shoot seismic over the blocks in 2004, with the drilling program beginning in 2006. In June 2004, BG was also awarded interests in two licenses in the 18th Norwegian offshore licensing round. These Norwegian Sea interests comprise 30% of Blocks 6504/1 (part block), 2, 4 and 5 (operated by ENI) and 30% of Blocks 6503/9, 6504/7 and 11 (operated by ChevronTexaco).
Most Popular Articles