Norway: Repsol Signs Agreement With Det norske Over Ulvetanna Prospect License

Det norske oljeselskap ASA has signed an agreement with Repsol Exploration Norge AS, whereby Det norske will reduce its ownership interest in PL 356 from 100 percent to 60 percent.

Repsol will take on a 40 percent interest in PL 356, where plans are being made for drilling of the Ulvetanna prospect in 2011.

“In operated production licenses where exploration drilling is carried out, Det norske aims to have between 30 and 50 percent interest. This agreement is the fourteenth time Det norske has reduced its ownership interest in production licenses prior to drilling operations, since the start of 2008. Farm out agreements play a crucial role in our portfolio optimization as we seek to diversify our drilling portfolio. We are very pleased to see a successful company like Repsol farming into PL 356” Det norske chief executive Erik Haugane said.

The agreement is subject to governmental approval.

Det norske oljeselskap ASA has interests in a total of 74 licenses, with 37 operatorships.

Det norske is the second-largest operating company on the Norwegian Continental Shelf both considering number of operatotships and exploration activity. I 2009 the company operated nine exploration wells, and the high activity will continue in 2010. Det norske runs its activities in a safe and responsible manner in close cooperation with the authorities.

Det norske currently employs a staff of 180. The company`s registered office is located in Trondheim. The company also has offices in Oslo,Harstad, and Stavanger. Det norske is listed on the Oslo Stock Exchange (DETNOR).

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Source: Detnorske, June 3, 2010;