Noreco Oil UK Receives Huntington License Default Notice
Norwegian Energy Company ASA (Noreco) announced Monday that its UK subsidiary, Noreco Oil UK, has been served a notice of default under the joint operating agreement governing the Huntington license in the central North Sea.
The default relates to non-payment of a cash call under the JOA, and suggests that Noreco Oil UK will no longer receive revenues from production on the Huntington field. As Noreco Oil UK is not expected to remedy the default, the JOA specifies that the remaining partners are entitled to exercise forfeiture rights in respect of the company’s 20 percent interest in the license on a pro-rata basis at the end of a 45 day period.
Commenting on the default notice, Noreco stated on its website:
“Noreco is working constructively with its license partners to determine next steps in relation to its license interest in a consensual manner.”
The expected forfeiture is expected to result in an additional loss of an estimated NOK 60 million ($7.09 million), according to Noreco. The total loss for Noreco related to the investment in Huntington will, after this, amount to approximately NOK 590 million ($69.73 million). The company had been trying to sell its participating interest in the Huntington license, although this process was terminated as no acceptable offers were received.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- FID For $13.2B Louisiana LNG Project
- UK Slaps 25 Percent Windfall Tax on Oil and Gas Profits
- African LNG Projects To Look Out For
- Saudi Arabia Making $1B From Oil Exports Every Day
- Shell Completes Sale of Russian Assets to Lukoil
- Most UKCS Operators Paying Invoices Promptly
- Equinor Submits Plan For Halten East Subsea Developments
- Bankrupt Sri Lanka Still Seeking More Oil and Fuel Imports
- EU Plan To Escape Russian Fossil Fuels May Fall Short Of Objectives
- EU Forms Task Force To Support Departure From Russian Fossil Fuels
- Oil Inventories Down to Dangerously Low Point
- USA Fuelmakers Shifting Into Higher Gear
- ExxonMobil Selling Shale Assets for $750MM
- Shots Fired During Tanker Loading
- NPD Grants Slew of Drilling Permits
- World's Oil Growth Engine Is About to Slow
- Saudi Arabia Says It Has Done All It Can for the Oil Market
- BlackRock Told Texas It Will Still Invest In Oil And Gas
- Ruble Hits 5-Year High as Gas Buyers Bend to Putin Demand
- DOI Provides Offshore Leasing Program Update
- Russian Oil Producers Start Using Tankers the World Did Not Want
- ADNOC Announces 650MM Barrel Oil Find
- Finland Loses Main Gas Supply
- This Is Where the Oil Price Would Be Without the War
- Ban on Excessive Gasoline Prices Heading for Vote
- Oil and Gas Discovery Confirmed at Hamlet
- Oil Inventories Down to Dangerously Low Point
- Top Headlines: Be Prepared to Pay More at the Pump from June
- USA Fuelmakers Shifting Into Higher Gear
- Gas Prices Could Rocket in the Near Term