Swedish firm Lundin Petroleum on Tuesday, June 27 entered into a sales and purchase agreement with the Norwegian oil and gas company, CapeOmega, to divest a 39 percent working interest in the Brynhild field in PL148 in the Norwegian North Sea.
The stake is owned by Lundin’s Norwegian subsidiary, Lundin Norway, which will retain operatorship and following the transaction will have a 51 percent working interest in the Brynhild field. The field is a subsea tie-back oil field to the Shell-operated Pierce field on the UK Continental Shelf.
With this transaction,CapeOmega, as existing partner, will increase its working interest in the Brynhild field from 10 to 49 percent.
Lundin said on Wednesday that the transaction involves a consideration of NOK 774 million ($91.9M), including historic tax and uplift balances and the effective date of the transaction is January 1, 2017.
The company added that the transaction is subject to customary Norwegian government, as well as Lundin Petroleum lender, approvals.
The field is situated in the southern part of the North Sea, about 10 km from the border with the UK shelf. It is located 55 km northwest of the Ula field and 38 km north of the Pierce field (UK).
The field was discovered by exploration well 7/7-2 in 1992. Appraisal wells 7/7-3 and 7/4-2 were drilled in 1993 and 2007, respectively. The Plan for Development and Operation (PDO) was submitted to the Ministry of Petroleum and Energy in August 2011 and approved by the Storting (Norwegian Parliament) in November of the same year. Production started in December 2014.