Statoil Acquires Martin Linge and Garantiana Equity Stakes
- Business & Finance
Statoil has informed that it will acquire Total’s equity stakes in the Martin Linge field (51%) and the Garantiana discovery (40%) on the Norwegian continental shelf for a consideration of USD 1.45 billion.
As a result of the transaction, Statoil will also receive remaining tax balances with a nominal post-tax value of more than USD 1 billion.
“This transaction adds competitive growth assets to our portfolio on the Norwegian continental shelf. The Martin Linge project features innovative solutions to enhance safety, capture value and reduce emissions, in line with our strategy. By leveraging Statoil’s operational experience and existing contracts, we can realize additional opportunities and synergies from these assets,” said Arne Sigve Nylund, Statoil’s executive vice president for Development & Production Norway.
Martin Linge is an oil and gas field under development west of the Oseberg field in the North Sea, with estimated recoverable resources in excess of 300 million barrels oil equivalent.
Martin Linge is being developed with a manned wellhead platform. The jacket substructure is already installed on location in the North Sea, while the topside is being completed at the Samsung yard in South-Korea and will be transported to Norway early 2018, the company said.
The project has experienced schedule delays and cost increases due to delayed topside engineering, construction and currency impact. A tragic accident at the yard in May 2017 also had consequences for the progress of the project. The current operator expects start of production in the first half of 2019. Recoverable resources have increased since the initial Plan for Development and Operation due to additional resources discovered.
Following completion of the transaction, Statoil will increase from 19% to a 70% interest in the field.
Garantiana is an oil discovery north of the Visund field in the North Sea with a recoverable resource potential between 50 to 70 million barrels oil equivalent. Development concepts are currently being evaluated. Following completion of the transaction Statoil will have a 40% interest in the discovery.
The transaction is subject to certain conditions, including government approval, Statoil said.
Statoil will take over as operator upon closing of the transaction in 2018.