OKEA Closes Wintershall Dea Stakes Buy In Three Offshore Fields

Oil company OKEA has completed the acquisition of Wintershall Dea’s interests in three offshore fields in the Norwegian part of the North Sea.

The sales and purchase agreement between the two companies was signed in May 2022. Through the acquisition, OKEA has added a new operatorship to its portfolio and increased production and reserves by 30-40 percent.

Following a thorough process to transfer expertise and experience, the transaction has been approved by the Norwegian authorities and is completed according to plan.

“OKEA and Wintershall Dea have had an excellent collaboration in this process. With an overriding focus on safety and business continuity and open and transparent dialogue, the parties have managed to lay the groundwork for a successful transition. We are proud of being able to take over the Brage operatorship, which enhances the scale and diversification of our portfolio and strengthens our position within existing core areas,” OKEA CEO Svein J. Liknes said.

Along with the operatorship at Brage, an organization of more than 140 employees will be integrated into the OKEA organization. The operations office for Brage will continue to be in Bergen.

Through the acquisition OKEA acquired 35.2 percent operated interest in the Brage Unit, 6.4615 percent interest in the Ivar Aasen field, and 6 percent interest in the Nova field from Wintershall Dea for an initial cash consideration of $117.5 million, subject to working capital and other adjustments, based on effective date January 1, 2022.

In addition to the fixed consideration, OKEA shall pay Wintershall Dea an additional contingent consideration based on an upside-sharing arrangement subject to the oil price level during the period 2022-24. Wintershall Dea will retain responsibility for 80 percent of OKEA’s share of total decommissioning costs related to Brage.

The assets comprise three high-quality producing assets, all located in the Norwegian North Sea, with expected combined net production of at least 7,000 boepd in 2023 and net 2P reserves of 13.2 mmboe. On Brage, OKEA has identified significant upside potential and opportunities for OKEA to add value as an operator.

In addition, OKEA further increases its net interest in the Ivar Aasen field from 2.777 to 9.2385 percent and strengthens its position in the core Gjøa area where it holds a 12 percent interest through the Nova field. As a result of the acquisition, OKEA establishes a large presence in Bergen, as well as a strengthened presence in Stavanger.

According to OKEA, the acquisition represents a significant step towards delivering inorganic growth in line with the company’s growth strategy. 

To contact the author, email bojan.lepic@rigzone.com