Photo: Grevling field; Source: OKEA

OKEA takes over North Sea oil discovery from Repsol

Norwegian oil and gas company OKEA has signed a sales and purchase agreement with Repsol for the acquisition of Repsol’s 40 per cent operated working interest in PL 972, which includes the Vette oil discovery, located off Norway.

Vette oil discovery map - OKEA
Vette oil discovery map; Source: OKEA

OKEA is now considering a coordinated serial development of Vette with another field Grevling, enabling a satisfactory breakeven cost for both fields.

The effective date of the transaction is 1 January 2021, OKEA said on Friday.

The Vette discovery (Block 17/12) is located at a water depth of about 110 metres in the south-eastern part of the North Sea.

Announcing the acquisition on Friday, OKEA said it estimates that the recoverable Vette volumes are in the range of 30-50 mmboe.

ONE-Dyas Norge and M Vest Energy each hold a 30 per cent working interest in the licence which also includes the Mackerel and Brisling discoveries.

OKEA noted it will pursue a cost-efficient development of Vette with a concept applicable for production from small discoveries.

OKEA has been working with the Grevling field development plan during the last years. Vette has a similar size as Grevling, and the two fields may jointly constitute a coordinated serial development enabling a satisfactory breakeven cost for both fields.

OKEA’s partners in the Grevling field are Petoro (30 per cent) and Chrysaor (35 per cent).

The transaction is subject to approval from both the licence partners and the Ministry of Petroleum and Energy.

Erik Haugane, CEO of OKEA, said: “We view Vette as the most likely candidate for a profitable small field standalone development on the NCS which can benefit a common infrastructure with similar size fields, like Grevling.

“Through this transaction, we continue to increase and diversify our portfolio with the key ambition to develop sub-100 mmboe fields on the NCS”.