Lime Completes Stake Acquisition in Yme Field from OKEA

Lime Petroleum AS has completed its acquisition of a 15 percent interest in the Yme field from OKEA ASA for a post-tax consideration of $15.65 million.

The Yme field is located in the southeastern part of the Norwegian sector of the North Sea. The effective date of the transaction is January 1, 2024.

All related obligations, including decommissioning costs, have been transferred to Lime, the company said in a news release. With the acquisition, Lime increases its share in the Yme Field to 25 percent.

Lime’s payment of a post-tax consideration of $9.2 million to OKEA in 2027 will be repaid to Lime in four 25 percent tranches upon completion of four pre-defined stages of abandonment of the field.

The Yme Field is located in PL 316 and PL 316B on the Norwegian Continental Shelf. According to the Norwegian Petroleum Directorate, Yme is a field in the south-eastern part of the Norwegian sector of the North Sea, 80.77 miles (130 kilometers) northeast of the Ula field.

Yme was discovered in 1987, and production started in 1996. After a production halt in 2001, the field was redeveloped and put into production in 2021.

In 2022, Lime acquired a 10 percent stake in the Yme Field from KUFPEC Norway AS, “strengthening Lime’s transformation into a full-fledged exploration and production player on the Norwegian Continental Shelf,” the company said in an earlier statement.

Lime CEO Lars Hübert said, “We are pleased that our strategy to build up reserves and resources on the Norwegian Continental Shelf is moving at a good clip. Both the Kim and Sognefjord East targets and the Bestla tie-back to the existing infrastructure in Brage are good examples of our near-field and in-field exploration and development strategy which will minimize additional construction costs and in turn, reduce emissions, while fast-tracking production and extending Brage Field’s lifespan. These new developments, together with our increased interest in Yme, will add to our reserves and resources in the years to come”.

The Yme Field currently produces between 20,000 and 25,000 barrels of oil equivalent per day (boepd gross), following the completion of the drilling of development wells in the second quarter. With the acquisition, daily production net to Lime will increase by approximately 3,500 boepd in 2024.

Other Norway Asset Updates

Meanwhile, the Brage Unit partnership has obtained approval of the PL055FS license which will allow the exploration, and if successful, development of the Sognefjord East area.

Following the successful 2023 Kim discovery within the Brage Field, the partnership further evaluated the surrounding Sognefjord East area for a potential extension of the reservoir to the east into the neighboring EXL004 Carbon Capture & Storage (CCS) Luna license.

 The Brage Unit partnership consists of OKEA ASA as operator with a 35.2 percent stake, Lime with 33.8434 percent, DNO Norge AS with 14.2567 percent, Petrolia Noco AS with 12.2575 percent, and M Vest Energy AS with 4.4424 percent.

Further, the Plan for Development and Operation (PDO) for PL740 Bestla, in which Lime has a 17 percent interest, was recently approved by the Norwegian Ministry of Energy.

The project is moving forward and will be developed as a tie-back to the Brage Field with first oil expected in early 2027, Lime said.

The PL740 partnership consists of OKEA ASA as operator with a 39.2788 percent stake, DNO Norge AS  with 39.2788 percent, Lime with 17 percent, and M Vest Energy AS  with 4.4424 percent.

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