Noreco buys Shell’s Danish North Sea assets for $1.9B

Oil major Shell has completed the sale of its Danish North Sea assets to Noreco for $1.9 billion.

The two companies had reached the agreement for the transaction in October 2018, and the deal, after some delays, was completed on Wednesday, July 31.

The acquisition of Shell’s Danish subsidiary Shell Olie- og Gasudvinding Danmark B.V has made Noreco the second-largest oil and gas producer in Denmark, after Total.

Shell Trading and Supply and Shell Energy Europe Limited will retain oil and gas lifting rights from the DUC assets for a period of time. Shell retains its Downstream presence in Denmark through A/S Dansk Shell, which includes the Fredericia refinery.

Noreco has, via the Shell transaction, acquired interests in assets comprising 15 fields and related infrastructure, developed under the Danish Underground Consortium operated by France’s Total since the acquisition of Maersk Oil in March 2018.

The DUC production started in 1972 and peak production was reached in 2005 at ~500 mboepd. Production is expected to increase over the next decade following finalization of the Tyra redevelopment in 2022.

As part of the transaction, Noreco also increased its interest in the Lulita field from 10% to 28.4%.

According to Noreco, included in the acquisition are proven and probable (2P) reserves of 195 million barrels of oil equivalents per year-end 2018, of which 66% are liquids. Shell’s share of production from DUC in 2018 was 57 thousand barrels of oil equivalents per day.

Riulf Rustad, Chair of the Board of Noreco: “With the successful completion of this transformational acquisition, we will now work closely with the operator to maximize recovery of proven reserves and resources. We will seek to continue value creation also by exploring new opportunities in the DUC concession and elsewhere.”

Offshore Energy Today Staff

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