EQNR Closes $900MM Bakken Sale
Equinor (NYSE: EQNR) has announced that it has completed the sale of its U.S. onshore assets in the Bakken to Grayson Mill Energy.
Following completion of the deal, which was first announced in February, Equinor has divested all its operated and non-operated acreage in the Bakken field in the U.S. states of North Dakota and Montana to the company, along with associated midstream assets, for a total consideration of around $900 million.
Equinor said it will continue to operate the assets for up to four months after closing the deal as part of a transition service agreement with Grayson Mill Energy. Nearly all field staff and many of those in the support teams working on the Bakken assets will transfer to Grayson Mill Energy upon the conclusion of their transition duties within Equinor, the company noted.
The transaction covers 242,000 net acres. Entitlement production from these assets in the fourth quarter of last year was 48,000 barrels of oil equivalent per day. In parallel with this deal, Equinor’s marketing and trading division will enter into a term purchase agreement for crude offtake with Grayson Mill Energy.
Commenting on the deal in a statement released in February, Anders Opedal, the president and chief executive officer of Equinor, said the company was “optimizing its oil and gas portfolio to strengthen profitability and make it more robust for the future”.
According to Equinor’s website, the U.S. is a core area for the company’s oil and gas production. Equinor is the fifth largest producer of oil and gas in the US Gulf of Mexico and its U.S. onshore operations are Equinor’s largest international production outside of Norway, the company’s website shows. Equinor has approximately 750 employees across its U.S. headquarters in Houston, satellite offices in Stamford, Washington, and field offices in North Dakota and Ohio.
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