Det norske to buy Noreco’s Norwegian licence portfolio

Noreco’s subsidiary, Noreco Norway, has entered into a sale and purchase agreement with Det norske oljeselskap for the sale of its remaining exploration licences, employees and a cash balance of ca. NOK 45 million, to be adjusted for working capital.

The effective date of the transaction is January 1, 2016.

According to Det norske, the license portfolio consists of seven licenses on the Norwegian Continental Shelf, including a 20 percent interest in the Gohta discovery (PL492) in the Barents Sea. Noreco’s 4.36 percent interest in the Enoch field is not included in the transaction.

“Following the recent acquisition of both Svenska Petroleum Norway and Premier Oil’s Norwegian subsidiary, this take-over of Noreco Norway underlines Det norske’s belief in, and commitment to the Norwegian Continental Shelf,” says Karl Johnny Hersvik, CEO of Det norske.

According to Noreco, subject to completion, the proposed transaction, together with the previously announced Enoch transaction, will constitute a ceasing of all of Noreco Norway’s petroleum activities. To remind, Noreco in December entered into a sale and purchase agreement to transfer its 4.36% participating interest in the Enoch licence, offshore Norway, to CapeOmega.

Added to the proceeds from the Oselvar sale this is expected to result in an estimated recovery of approximately 94.7% of the initial principal amount under the NOR06 bond issue.

The transaction entered into with Det norske is conditional on approval from NOR06 bondholders, Noreco noted.

Pertaining to this, Noreco has received pre-acceptance and voting commitments for the transaction from major bondholders holding a majority of the outstanding bonds.

Additionally, Noreco added, the proposed transaction is conditional upon approvals by the Ministry of Petroleum and Energy and the Ministry of Finance.

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Navingo Career Event

The Navingo Career Event is Europe’s biggest career event for the maritime…

read more >

Offshore Technology Conference (OTC) 2020 Postponed

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply