Equinor to Pay $965MM for Stake in Shell's GOM Oilfield

Equinor to Pay $965MM for Stake in Shell's GOM Oilfield
Equinor beats out Delek to acquire 22.45 percent interest in Shell's Caesar Tonga oilfield.

Equinor will acquire an additional 22.45 percent interest in Shell Offshore Inc.’s Caesar Tonga oilfield, located in the U.S. Gulf of Mexico, for $965 million cash, the Norwegian energy company announced Monday.

If the deal sounds familiar, it’s because just a month ago, that 22.45 percent stake was set to go to Delek Group.

Equinor has exercised its preferential rights to acquire the interest, which will increase the company’s interest from 23.55 percent to 46.00 percent. Anadarko, the operator, holds 33.75 percent interest, while Chevron retains 20.25 percent interest.

Equinor’s Christopher Golden, senior vice president for development and production international, North America Offshore, said the company is pleased to increase presence in the U.S., one of its core areas.

The Caesar Tonga field is located 180 miles south-southwest of New Orleans in the Green Canyon area and is one of the U.S. Gulf’s largest deepwater resources. Equinor’s current production share from Caesar Tonga is 18,600 barrels of oil equivalent per day.

“Deepwater Gulf of Mexico forms an important part of Equinor’s portfolio. This deal will strengthen our position in this prolific basin and build on the recent discovery in the Blacktip well,” Golden said. “Later this year we will be drilling the Equinor-operated Monument prospect, which has the potential to further develop our position in the Gulf of Mexico.”

The transaction will be backdated for an effective date of Jan. 1, 2019. Closing of the transaction will be subject to customary consents and approvals.



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