VNG to buy Chevron’s interest in Draugen field

VNG will buy Chevron Norge’s interest in producing field Draugen, offshore Norway.

VNG Norge AS has entered into an agreement to purchase Chevron Norge AS’s interest in Draugen and, subject to regulatory and government approval, will become a partner in the underlying licences with a 7.56 % interest. The effective date for the interest transfer will be 1 January 2014. The sales and purchase agreement was signed on 19 June. Norske Shell is the operator in the licence with a 44.56 % interest, and Petoro is a partner with a 47.88 % interest.

With this transaction, VNG Norge will double its present production to more than 4000 barrels of oil equivalents per day. Additionally, the company further strengthens its position in the area in the Norwegian Sea.

VNG Norge is the operator on PL586 where a discovery was made in the Pil prospect last April. This discovery is the largest on the Norwegian continental shelf so far this year. An appraisal well has been drilled in the same prospect, and at the moment a sidetrack is being drilled in the Bue prospect in the same licence.

On top of this, VNG Norge owns shares in the producing fields of Njord and Hyme, is a partner in the Snilehorn discovery (PL348B), has been awarded operatorship in PL753 in the 2013 APA round, and has shares in several other production licences in the area.

Atle Sonesen, managing director at VNG Norge: “We are very pleased with this agreement, which supports our long-term commitment to the Norwegian continental shelf. In addition to a considerable increase in our daily production and our reserve base, it also shows that we are determined to strengthen our position on the Halten Terrace. We have previously expressed that VNG Norge would like to play a prominent role in this area. The acquisition of the Chevron Norge AS’s interest in Draugen will be a new and substantial contribution in this respect, and we are looking forward to being an active and competent partner in this licence.”