Norwegian oil and gas player enters North Sea license with 50% interest

Norway’s oil and gas player enters North Sea license with 50% interest

Norwegian oil and gas company OKEA has signed a sale and purchase agreement (SPA) with compatriot DNO Norge to enter into the Brasse license in the northern North Sea.

Brage. Source: OKEA

The aim of the partnership is to undertake a fast-track, low-cost review to assess whether a value accretive development concept can be found for the estimated 30 mmboe recoverable volumes at Brasse, which is located 13 kilometers from the OKEA-operated Brage field, the Norwegian firm said.

Under the agreement, OKEA enters into the Brasse license (PL740) with a 50 per cent working interest, effective 1 January 2023. Following the transaction, the two partners will each hold a 50 per cent working interest in the license.

The transaction is subject to an extension of the license and approval by Norway’s Ministry of Petroleum and Energy. The transaction itself is executed at zero cost to OKEA.

Brasse is an oil and gas discovery located in the northern North Sea, 13 kilometers southeast of the Oseberg Field Center, in a water depth of 120 meters.

The discovery was made in 2016 and delineated by four wells in the period from 2017 to 2019. The reservoir is said to contain oil with a gas cap in the Upper Jurassic Sognefjord Formation.

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It was reported in November that OKEA took over the operator role at the Brage oil field. Namely, the Norwegian player completed the purchase of Wintershall Dea’s interest in three North Sea fields.

The deal entailed the operatorship and a 35.2 per cent share in the Brage oil field along with a 6.46 per cent interest in Ivar Aasen and a 6 per cent stake in the Nova development for $117.5 million.

OKEA’s partners in the Brage field are Lime Petroleum (33.84 per cent), DNO Norge (14.26 per cent), Vår Energi (12.26 per cent) and M Vest Energy (4.44 per cent).