Aker BP, Equinor trade license stakes to hasten Norwegian cluster area developments

Aker BP and Equinor have agreed to a series of license transactions designed to speed up various prospective field developments offshore Norway.

The initial arrangements cover the Ringvei Vest and Yggdrasil field clusters in the North Sea and the Wisting area of the Barents Sea. These should lead to improved alignment of ownership interests, supporting coordinated development and enhanced overall resource recovery, according to Aker BP.

For the Yggdrasil area, the company plans to acquire a 38.16% interest from Equinor in UK license P2343; this adjoins Norwegian PL1249, contains parts of Omega Alfa, one of the largest discoveries last year in Norwegian waters.

Drilling confirmed oil volumes in parts of the legacy Frigg area, Aker BP added, also increasing the prospectivity of the broader Frigg structure, which extends across the Norwegian/UK continental shelves.

Through this deal, Aker BP would gain a more balanced ownership position across the licence boundary, strengthening the case for joint evaluation and aligned development of the wider Frigg area.

Theoretically, the license position also provides an opportunity to access additional exploration potential on the UK side, the company noted (assuming the UK government relaxes its opposition to exploratory drilling in new areas).

Any further commercial discoveries that follow would likely be tied back to the Yggdrasil area’s new offshore infrastructure. Aker BP aims to grow the Yggdrasil resource base to produce more than 1 Bbbl from the area.

Under a second deal, Aker BP will take a 19% share from Equinor in multiple licenses in the Ringvei Vest area of the North Sea, close to the Troll/Fram Field complex. These include PLs 090JS, 248I and 925 containing the Grosbeak discovery, PL 248C (Swisher), PL 630 (Toppand) and PL 923 (Røver Nord and Røver Sør).

Again, this transaction will improve alignment of ownership interests across the licenses, Aker BP said, enabling a coordinated approach to development planning and project execution. It also strengthens Aker BP’s position in this prospective area.

The company anticipates another cluster development for Ringvei Vest, operated by Equinor in the Troll-Fram area of the North Sea. Kveikje (Aker BP, 19%) should also be included in the development.

In exchange, Aker BP will cede a 7.5% stake to Equinor in the Wisting discovery in the Barents Sea's PL 537 and PL 537B, accompanied by a cash consideration of $23 million.

Wisting in the Barents Sea remains Norway’s single largest undeveloped oil discovery but finding an economic development solution in this remote area has proven problematic. However, Equinor expects to take FID next year.

Following the transaction, Aker BP would retain a 17% interest in the field. Completion of all the transactions is subject to regulatory and governmental approvals.

“These agreements will enable better development solutions, reduce complexity and support value creation in line with our long-term strategy,” said Kjetil Hove, Equinor's EVP for Exploration and Prouction.

Equinor marks 50 years in northern Norway