Lundin Petroleum AB and BG Group have signed a Sale and Purchase Agreement, under which BG will acquire a 60% equity interest from Lundin Petroleum in PL292 in the central Norwegian North Sea. BG will also acquire from Lundin Petroleum an option to acquire a further 10% interest in PL292.
License area PL292 incorporates blocks N6/3 and N15/12d. Block N6/3 contains the Pi oil and gas discovery and is adjacent to existing central UK North Sea infrastructure, including the producing BG-operated Armada gas field complex.
Under the transaction, Lundin Petroleum will transfer operatorship of the license area on Apr. 11, 2005 or when the partners' decide to drill a well.
The effective date for the transaction is Jan. 1, 2004. From that date, BG will assume the costs and liabilities relating to the interest.
The transaction is subject to the approval of the Norwegian Petroleum Directorate, the Ministry of Petroleum and Energy, and the Ministry of Finance. Completion is expected in 4Q 2004.