Vår Energi finalizes North Sea field divestment

Norwegian oil and gas company Vår Energi has finalized the divestment of 10 percent ownership interests in six of its operated licenses across the Balder and Ringhorne fields in the North Sea to Mime Petroleum.

Vår Energi agreed to sell a share in six offshore licenses across the Balder and Ringhorne fields to Mime Petroleum at the beginning of April 2019.

The agreement provides Mime Petroleum with 10 percent ownership interests in the Balder and Ringhorne fields, and 7.4 percent ownership interests in the Ringhorne East field.

The two companies did not disclose the value of the transaction.

Vår Energi announced the completion of the deal on Thursday, August 1, 2019.

Kristin F. Kragseth, CEO in Vår Energi, said: “We are pleased with having Mime Petroleum as a new partner; investing in our ambitious joint plans to continue the economic development of the fields, and we look forward to progressing the revitalization of the Balder and Ringhorne area together.”

In a separate statement on Thursday, Mime said that this was its first acquisition since its prequalification as a licensee on the NCS in June 2018.

Sverre Skogen, Executive Chairman of Mime, said: “We share Vår Energi’s ambitious plans to develop and maximise the Balder/Ringhorne area and we are committed to support and cooperate with the operator to ensure safe and efficient operations.”

The partners plan to redevelop the Balder and Ringhorne fields through the Balder X project.

The Balder field is located in PL 001 on the Utsira High in the North Sea – the very first license awarded on the shelf with first exploration drilling and first oil discovery offshore Norway. The field was developed with a floating production, storage, and offloading vessel (FPSO) and several subsea production systems. Production started in 1999, and Balder exports gas to Statpipe via the production vessel Jotun A.

The plan is to extend production in the area towards 2045, and a field lifetime extension program is progressing for the Balder FPSO (2030), including new seismic surveys and drilling programs.

Balder X Project entails major future project activities such as extending the lifetime of the Jotun FPSO towards 2045, and drilling of 20 new production wells across the Balder and Ringhorne fields. Other projects comprise an upcoming drilling program at Ringhorne and the extension of the lifetime of the Balder FPSO towards 2030. A revised Plan for development and operation (PDO) is planned to be submitted in the fourth quarter of 2019.

The Ringhorne field is located in PL 027 and 169 E in the North Sea, about 9 kilometers northeast of the Balder FPSO. The field is developed with a platform with initial processing and water injection capabilities.

Offshore Energy Today Staff

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