UK Firm Sells All Norwegian Assets And Entire Statfjord Stake For $1B+

UK Firm Sells All Norwegian Assets And Entire Statfjord Stake For $1B+
Spirit Energy has decided to sell its Norwegian business including the entire Statfjord field for just under $1.1B.

UK company Spirit Energy has decided to divest its Norwegian business including the entire Statfjord field for a total headline consideration of just under $1.1 billion, plus payments linked to commodity prices.

Spirit Energy said that it would be selling all its interests held by its Norwegian arm – Spirit Energy Norway – to Sval Energi.

This sale excludes interests both in the Norwegian and UK parts of the Statfjord field which the company will be selling to Norwegian major Equinor.

The agreement with Sval is worth around $1.026 billion and it is the largest acquisition of assets on the Norwegian Continental Shelf since 2019. It is worth noting that this is Sval’s 6th acquisition since acquiring Solveig Gas in 2019.

The transaction includes 45 licenses – six of them operated, including 7 producing fields – two of them operated, and several development and exploration opportunities. The main three assets in the sold portfolio are Nova, Kvitebjørn, and Ivar Aasen.

Sval stated that Plateau production from the combined company is expected to reach 60,000 barrels of oil equivalent per day in 2023.

“Through this transaction, Sval is further strengthened with an experienced, competent, and accomplished team. Spirit Energy’s Norwegian portfolio adds material production and gives us a good asset base for further growth on the NCS,” said Nikolai Lyngø, CEO of Sval Energi.

“With this transaction, our portfolio will at plateau have an average carbon footprint of approximately 6 kg CO2 per barrel of oil equivalent, well below the average on the NCS,” Lyngø added.

The acquisition has an effective date of January 1, 2021, and is expected to be completed in the second quarter of 2022, subject to standard conditions. All 130 of Spirit Energy Norway’s workers will be transferred to Sval Energi.

As for Equinor’s acquisition of Statfjord, both parties agreed on a total consideration of $50 million, plus a contingent payment linked to commodity prices for the period between October 2021 to December 2022.

The Statfjord area spreads across the Norwegian and UK Continental Shelves and is developed by three integrated production platforms – Statfjord A, B, and C. The Norwegian part of the Statfjord field lies in blocks 33/9 and 33/12 in production license 037, while the British part is in UK block 211/25 in licenses 104 and 293. All licenses are operated by Equinor.

“Statfjord is one of the earliest oil fields on the Norwegian Continental Shelf. In 2019, we celebrated the 40th anniversary since the start of production in 1979. Since production started in 1979, Statfjord has produced 5.1 billion barrels of oil equivalent […],” Camilla Salthe, senior vice president for late-life assets in Equinor, stated.

“We still have high expectations for Statfjord and have recently launched a plan to extend the life of the field towards 2040,” she concluded.

According to Equinor, reducing CO2 emissions will be a key priority for the field. Towards 2030, Equinor plans to reduce emissions from Statfjord by 50 percent, contributing to Equinor’s climate goals for the NCS. The closing of the transaction is subject to certain conditions and is expected to be completed by the first half of 2022.


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