Aker BP to buy 11 licenses from Total for $205 million

Norwegian oil company Aker BP has entered into an agreement with Total E&P Norge to acquire its interests in a portfolio of 11 licenses on the Norwegian Continental Shelf for a cash consideration of $205 million.

Skarv FPSO, Source: Aker BP
Skarv FPSO, Source: Aker BP

The portfolio includes four discoveries with net recoverable resources of 83 million barrels oil equivalents (mmboe), based on estimates from the Norwegian Petroleum Directorate, Aker BP said on Tuesday.

Two of the discoveries, Trell and Trine, are located near the Aker BP-operated Alvheim field and are expected to be produced through the Alvheim FPSO.

The Alve Nord discovery is located north of the Aker BP-operated Skarv field, and can be produced through the Skarv FPSO.

The Rind discovery is part of the NOAKA area where the total recoverable resources are estimated to more than 500 mmboe, and where Aker BP is working towards a new area development.

In addition to these discoveries, the transaction also provides the company with increased interest in exploration acreage near the Aker BP-operated Ula field.

The transaction is subject to approval by Norwegian authorities.

Karl Johnny Hersvik, CEO of Aker BP commented: “We see a huge value creation potential in maximizing production through our operated production hubs. This requires continuous development and optimization of the existing reserves and resources, as well as adding new resources through exploration and acquisitions of existing discoveries.”

Hersvik added: “With this transaction, we get access to new tie-back opportunities in the Alvheim and Skarv areas, we strengthen our resource base in the NOAKA area, and we increase our interest in exploration acreage near the Ula field. These new resources will further strengthen our long-term production profile and contribute positively to future earnings.”

The license interests covered by the transaction