Faroe Petroleum has completed the sale of its 17.5% working interest in the Fenja development located in PL586 in the Norwegian Sea to Suncor. Faroe retains a 7.5% working interest.
Faroe said on Thursday it received $68 million, reflecting the amount of $54.5 million together with working capital adjustments notably capital expenditure incurred since the effective date of 1 January 2018.
The Fenja field is operated by VNG, contains recoverable resources of approximately 100 million barrels oil equivalents, mostly oil. The field development will cost NOK 10.2 billion
Commenting on the completion of the Fenja stake sale, Graham Stewart, CEO, Faroe CEO said: “I am pleased to announce the completion of the sale of a partial interest in our Fenja project. This transaction validates Faroe’s business model of generating tangible and attractive shareholder returns from our exploration portfolio.
“As well as producing an immediate cash return, the transaction reduces Faroe’s net capital expenditure on the Fenja development to approximately $96 million. This, in turn, gives us additional liquidity for our other high quality projects such as the Brasse development and ensures we are fully funded to reach our organic production growth target of 35,000 boepd.”
“Faroe remains confident in its potential to exceed this production growth target through additional organic developments and investments, in addition to potential M&A opportunities,” Stewart said.
Fenja will be developed with two subsea templates with six wells (three producers, two water injectors, and one gas injector) connected to the Njord A platform for processing and storage and export via the Njord B ship. The field has planned production start in 2021.
Offshore Energy Today Staff