Lotos to Buy Stakes in Centrica’s Norwegian Offshore Fields for $175 M

Polish oil company Grupa Lotos has signed an agreement to buy into several Centrica Norge’s offshore concessions in Norway.

According to a filing made by Lotos today, the company will buy stakes in Centrica’s producing fields Atla (20%), Skirne/Byggve (30%) and Vale (25.8%). Also, Lotos will buy into Centrica’s undeveloped assets Frigg GD (10%), Rind (7.9%), Fulla (50%), as well as some exploration assets.

Furthermore, Lotos has agreed to buy a 5% share in the Heimdal Gas Center, a hub for the processing and distribution of gas. Heimdal consists of an integrated steel platform, and a riser platform.

Under the agreement, Lotos will pay $175.8 million for the transaction, which is expected to be completed in December 2013.

Estimated proved and probable (2P) reserves attributable to Lotos, from the above mentioned assets, are estimated at around 9 million barrels of oil equivalent.

Proved reserves are those quantities of oil which can be estimated with reasonable (at least 90%) certainty to be commercially recoverable from known reservoirs and under current economic conditions, operating methods, and government regulations.

Probable reserves are those unproved reserves which analysis of geological and engineering data  suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.

Offshore Energy Today Staff, November 05, 2013