Offshore staff
STAVANGER, Norway – Noreco has issued an update on its license interests in the Danish North Sea, which could be jeopardized by the company’s financial difficulties.
In January the company’s Danish subsidiary could not make payments for its share of production costs at theNini field, and was therefore in breach of the license agreement.
As the situation was not remedied by March 21, the other partners may now claim Noreco’s 30% stake in the license.
A committee of bondholders negotiating all restructuring proposal for Noreco has stated that costs and cash flows associated with the company’s Danish operations must improve.
The company and its bondholders remain in a dialogue with the Nini partners in an attempt to reach an amicable solution.
As for the Xana and Cecilie licenses, Noreco received notification on respectively Feb. 6 and March 3 of the breach of license terms, and that the shares may be forfeited after 60 days.
However, the stakes in the Lulita andHuntington fields owned directly or indirectly by the company’s Danish subsidiaries are not affected by the current situation.
03/23/2015
