Noreco’s $1.9B acqusition of Shell’s Danish assets delayed

Norwegian Energy Company (Noreco) will have to wait a little longer to wrap up its previously announced $1.9 billion deal to buy Shell’s assets in Denmark.

Tyra East; Source: Maersk Group
Tyra East; Source: Maersk Group

To remind, Noreco in 2018 agreed to buy Shell’s shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU) which holds a 36.8% non-operating interest in the Danish Underground Consortium (DUC).

DUC – operated by Total – is a joint venture between Total E&P Danmark A/S (31.2 %), Shell (36.8 %), Total Denmark ASW, (12 %) and Nordsøfonden (20 %). The JV works on oil recovery from the Sole Concession holder’s area of the Danish North Sea.  The Sole Concession covers 1,635.7 km² of the DCS.

Noreco last year said the transaction would establish Noreco as an E&P company on the Danish Continental Shelf (“DCS”), and position it as the second largest oil and gas producer in the country.

In a statement on Friday, Noreco said that the closing of the acquisition had been delayed due to an unresolved issue between Total and Shell.

“The closing of the acquisition of the shares in Shell Olie- og Gasudvinding Danmark B.V., holding Shell’s economic interest in the DUC concession has been delayed due to an outstanding issue between the seller and the operator of DUC (concessionaire). Noreco expects closing to take place in July,” Noreco said, without providing further details.

As per the details of the agreement between Shell and Noreco last year, Noreco will assume all of Shell’s existing commitments and obligations, including the Tyra redevelopment and the decommissioning costs associated with the assets.

Offshore Energy Today Staff

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