Statoil Tightens Grip on Utgard Field in North Sea
June 03 2016 - 4:29AM
Dow Jones News
By Kjetil Malkenes Hovland
OSLO-Norway's Statoil said Friday it had taken control of the
U.K. part of the Utgard gas field in the North Sea by acquiring a
45% stake from Japan's JX Nippon for an undisclosed amount, after
previously snapping up stakes from First Oil and Talisman
Sinopec.
The Norwegian state-controlled oil producer expects to make a
final decision to develop Utgard later this year and to start
production in 2020. The field is expected to hold about 60 million
barrels of oil equivalent, in the form of natural gas and
low-density hydrocarbons called condensates.
After the transaction, Statoil would control all of the U.K.
P312 license. The Utgard field, previously known as Alfa Sentral,
extends from the P312 license across the border into Norway's PL046
license, which is 62% controlled by Statoil with partners including
Lotos AD, ExxonMobil Corp. and Total SA.
The acquisition is part of Statoil's plan to add more resources
to existing infrastructure in the North Sea and extend its
lifetime. The company plans to pump Utgard's gas and condensate to
the nearby Sleipner field, a 1993 field that has become a key hub
for processing North Sea gas and exporting it by pipeline to the
European market.
Statoil entered Utgard in October by acquiring a 24% stake in
the U.K. P312 license from First Oil for $15 million, and then
added another 31% in December from Talisman Sinopec as part of a
wider asset swap.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
June 03, 2016 04:14 ET (08:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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