Equinor to swap Norwegian oil and gas assets with Faroe Petroleum
The Norwegian state-owned energy company, Equinor, will enter an assets swap with the UK-based oil and gas firm, Faroe Petroleum.
The companies have agreed to a binding, non-cash deal to exchange Norwegian oil and gas assets, Reuters reported.
Faroe will swap interests in the Njord, Hyme redevelopment, and Bauge development assets, whilst Equinor will offer its Alve, Marulk, Ringhorne East, and Vilje assets.
“I am pleased to announce this significant swap transaction which is in line with our stated strategy of delivering shareholder value through active portfolio management,” stated Graham Stewart, CEO of Faroe Petroleum.
“It immediately rebalances our asset mix towards production after a series of exploration successes and resultant development projects.”
“The Transaction will accelerate delivery of our fully-funded production target, while strengthening further our financial position in advance of reaching investment decisions on our new Iris/Hades and Agar discoveries. We are now confident in our ability to deliver in excess of 50,000 boepd in the medium term.”
From the agreement, the UK firm aims to increase its cash flow and output with Equinor intending to explore less mature fields in the Norwegian Sea.
“The net effect of our agreement with Faroe is to upgrade Equinor’s portfolio in line with our updated roadmap for the NCS,” remarked Siri Espedal Kindem, Senior Vice President for Operations North at Equinor.
“We are strengthening our operated position in the prolific Njord area, which we believe continues to have considerable upside potential.”
“We remain operator and majority equity holder in Alve which is produced via Norne, another important part of the Norwegian Sea for us. And we are reducing our exposure to non-core and partner-operated assets.”
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