Statoil to Buy Total Assets Offshore Norway in $1.45B Deal
Total S.A has agreed to sell all of its interests in the Martin Linge field (51 percent) and Garantiana discovery (40 percent) on the Norwegian Continental Shelf to Statoil ASA for $1.45 billion.
The transaction, which has an effective date of January 1, 2017 and remains subject to final due diligence and approval from the relevant authorities, involves the transfer of relevant employees from Total to Statoil in compliance with the applicable legislation.
“The forthcoming acquisition of the Maersk Oil portfolio, which will make Total the second largest operator in the North Sea, leads us to review our portfolio in this area so as to focus on the assets in which Total will be able to generate synergies and reduce their breakeven points,” said Arnaud Breuillac, president of exploration and production at Total, in a company statement.
“In this context, given that Martin Linge is Total's only operated asset in Norway, there is limited scope to optimize operations, whereas with Statoil’s leading operating position on the Norwegian Continental Shelf, Statoil is in a better position to optimize this asset for the benefit of all stakeholders,” he added.
"Norway remains a strategic country for Total as one of the largest contributors to the group's production and we of course intend to continue bringing our expertise to Norway by focusing in particular on major non-operated assets such as Ekofisk, Snohvit and Johan Sverdrup,” Breuillac continued.
Arne Sigve Nylund, Statoil’s executive vice president for development and production in Norway, said the transaction would add competitive growth assets to the company’s portfolio on the Norwegian continental shelf.
“By leveraging Statoil’s operational experience and existing contracts, we can realize additional opportunities and synergies from these assets,” said Nylund in a company statement.
Martin Linge is an oil and gas field under development west of the Oseberg field in the North Sea, with estimated recoverable resources in excess of 300 million barrels oil equivalent. The expected production lifetime extends into the 2030s.
Garantiana is an oil discovery north of the Visund field in the North Sea with a recoverable resource potential between 50 to 70 million barrels of oil equivalent. Development concepts for the field are currently being evaluated.
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