Total Increases Ownership in Valleys Offshore Block

Norwegian Energy Company (UK) Ltd, a fully owned subsidiary of Norwegian Energy Company ASA, has entered into an agreement to sell 35 percent of UK license P2032 (Valleys) to Total E&P UK. After this transaction, Noreco will keep a 15 per cent interest in the license.

 Total Increases Ownership in Valleys Offshore Block

According to the agreement, Total will compensate Noreco by carrying Noreco’s share of seismic costs. If the licence partnershipdecides to drill an exploration well on the licence, Total will also cover drilling costs for Noreco’s retained interest in the licence. The agreement is effective from 1 December 2013.

The existing carry agreement between Noreco and license partner Trap Oil is still in force, leaving Noreco with a 6.25 per cent paying equity interest in the license.

“The transaction is part of Noreco’s portfolio management, and is contingent upon government approval,” Noreco said.

Earlier this week it was announced that Total would acquire, from Trapoil, a 30.625 per cent. equity interest in Valleys (Blocks 21/8c, 21/9c, 21/10c, 21/14a and 21/15b) by funding 43.75 per cent. of Trapoil’s current 50 per cent interest, held via its wholly owned subsidiary, Trap Oil Limited, covering certain costs up to and including the drilling of an exploration well.

December 19, 2013