STAVANGER, Norway — Equinor has entered a sales agreement with upcoming independent Sval Energi concerning two field complexes in the Norwegian North Sea.
Pending government and partner approvals, Sval would acquire Equinor’s nonoperated share in the Greater Ekofisk Area, operated by ConocoPhillips and 19% of Equinor’s stake in Martin Linge (19%).
The deal would net Sval 7.604% of Ekofisk area licenses PL018, PL018B and PL275 (including the Ekofisk, Eldfisk and Embla fields) and 6.63922% in the Tor Unit.
Equinor would thereby exit the Greater Ekofisk Area entirely. The company would remain operator of Martin Linge with a 51% interest.
Also included in the transaction is Equinor’s 18.5% interest in Norpipe Oil, part of the infrastructure transporting oil from the Greater Ekofisk Area to land.
The terms call for a cash consideration of $1 billion and a contingent payment structure linked to oil and gas prices for both assets for 2022 and 2023.
“Following the completion of this transaction and the [recent] Spirit Energy Norway acquisition, Sval will be on course to reach 100,000 bpe/d in 2023 and will continue its growth trajectory in the coming years," Sval Energi CEO Nikolai Lyngø said. “Together with our partners, we look forward to creating further value from these assets.”
Rune Nedregaard, Equinor’s senior vice president of exploration production South Norway, said the Greater Ekofisk Area is an area where the company has limited participation.
“We have therefore decided to sell our position in the area during a period of high prices and to redirect capital to other core areas for the business," Nedregaard said.
The transaction should complete later this year.