Faroe Wraps Up Acquisition of Five Norwegian Fields
- Business & Finance
Faroe Petroleum has completed the acquisition of interests in five Norwegian North Sea producing oil and gas fields from DONG E&P Norge AS.
The company acquired interest in Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%) fields.
The net consideration payable at completion was approximately USD 26.7 million, down from the previously announced original consideration of USD 70.2 million.
Graham Stewart, Chief Executive of Faroe Petroleum, said: “We are pleased to announce the completion of this acquisition, which broadens and strengthens our production base materially and both boosts and diversifies our profitable oil and gas production portfolio. The production from the acquired assets has exceeded our expectations for the year to date in turn reducing the final consideration amount below guidance.
“The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway; synergies have already been realized with the upcoming development of our Oda field, announced last week, which will be tied back subsea to Ula. This transformational deal paves the way for Faroe’s evolution into a full cycle E&P business fit for the modern industry as we continue to grow the value of the company through exploration, development and production with a high quality and diverse portfolio of assets.”