RWE AG, through its subsidiary RWE Dea Norge AS, reached an agreement on the sale of its 20% licence interest in the “Edvard Grieg” development in Norway to OMV (Norge) AS, a subsidiary of OMV AG, for a cash purchase price of € 247.9 million as per effective date 1 January 2012 plus a contingent payment of up to € 35 million based on achievement of certain operational milestones.
The disposal of RWE Dea’s stake in “Edvard Grieg” (PL338) represents further progress to create significant financial headroom for RWE.
Dr. Leonhard Birnbaum, Board Member of RWE, commented on the transaction: “The disposal is a great success as it demonstrates RWE Dea’s ability to create significant value through its activities.”
Thomas Rappuhn, CEO of RWE Dea: “The disposal is an important part of RWE Dea’s contribution to the group’s disinvestment plans; however, we will retain our strong presence and commitment to Norway.” Despite the sale of its stake in “Edvard Grieg”, RWE and its subsidiaries RWE Dea and RWE Dea Norge remain committed to Norway. RWE Dea Norge holds a very attractive license portfolio with more than 40 licenses on the Norwegian continental shelf and is operator in six licenses.
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.
Press Release, October 17, 2012