RWE Completes Edvard Grieg Sale (Norway)

RWE AG today completed the sale of its 20% interest in the Norwegian “Edvard Grieg” license to OMV (Norge) AS, a subsidiary of the Austrian OMV Group, after the transaction has been approved by the Norwegian Ministry of Petroleum and Energy and the Ministry of Finance.

The transaction takes retroactive effect as of 1 January 2012. RWE receives a total consideration of around € 255 million plus a contingent payment of up to € 35 million based on the achievement of certain operational milestones.

Dr. Leonhard Birnbaum, Board Member of RWE: “The closing of this transaction constitutes further progress in RWE’s divestment programme generating financial headroom for the Group. Regardless of the sale of its stake in “Edvard Grieg”, RWE and its subsidiaries RWE Dea and RWE Dea Norge remain committed to the Norwegian market with RWE Dea Norge holding a very attractive license portfolio with more than 40 licenses in the country.”

The Edvard Grieg is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf (NCS).

First production from the Edvard Grieg field in PL338 is expected in late 2015 with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boepd) (90,000 barrels of oil per day (bopd) and 1.5 million Sm3 of gas per day).

The capital cost of the Edvard Grieg development including platform, pipelines and production wells is estimated at USD 4 billion. The Edvard Grieg platform design capacity will accommodate in excess of 160,000 boepd (130,000 bopd and 4 million Sm3 gas per day) when Draupne production is combined with that from the Edvard Grieg field.

[mappress]
December 19, 2012