Equinor ASA and Petoro AS have entered into a value-neutral asset swap agreement in the Haltenbanken area of the Norwegian Sea.
The agreement is value-neutral, which means that the interests the companies are swapping are assessed as having equal value, the two companies said in separate news releases.
Equinor will increase its ownership in the Heidrun field and the Noatun discovery and reduce its ownership in the Tyrihans field and the Castberg field, as well as the Carmen and Beta discoveries. Heidrun and Tyrihans are two of the largest producing fields in the Halten area in the Norwegian Sea. Heidrun is among the fields with the longest remaining life on the Norwegian continental shelf, Equinor said.
“We have a strategy to continue the development and the value creation on the Norwegian continental shelf and expect to maintain a high production with lower emissions towards 2035. Alignment of ownership around the larger production hubs are important enablers for long-term value creation,” Kjetil Hove, Equinor Executive Vice President for Exploration and Production Norway, said.
“Although this is a value-neutral swap, this alignment of ownership will add more value to all parties from the Halten-area over time. Balanced partnerships will simplify commercial agreements, lower operating costs, and accelerate new developments with added production at a lower cost,” Hove noted.
Currently, Equinor holds an equity interest in the Heidrun field of 13.0 percent, while Petoro has an equity interest of 57.8 percent. For Tyrihans, Equinor’s ownership is 58.8 percent, while Petoro does not hold any equity.
Following the completion of the transaction, Equinor will own 34.4 percent in Heidrun and 36.3 percent in Tyrihans, while Petoro will own 36.4 percent in Heidrun and 22.5 percent in Tyrihans. Equinor's ownership of Johan Castberg will be 46.3 percent.
According to Petoro, the agreement will ensure higher value creation and more efficient resource management in the companies’ activities on the Halten Bank.
“Our good dialogue with Equinor has allowed us to reach an agreement that will lead to greater harmonization and equalization of important ownership interests. We are very confident that this will contribute to a more comprehensive and value-driven development of these fields, in the best interests of all involved parties,” Petoro CEO Kristin Kragseth said.
The swap agreement is subject to various regulatory approvals and approval by the Norwegian Parliament. The effective date of the agreement is January 1, 2025.
To contact the author, email rocky.teodoro@rigzone.com
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