Kufpec’s subsidiary Kufpec Norway has reached agreement to acquire a 15% interest in the Gina Krog field in the North Sea off Norway from Total for a consideration of $317 million with effective date of January 1, 2017.
Kufpec said on Wednesday that, at closing, it will add approximately 34 MMboe in net reserves and approximately 9,000 boe/d of production from Gina Krog, which came on-stream in June 2017 and is operated by Statoil.
The Gina Krog platform is tied in to Sleipner A platform and uses both processing capacity on the platform and existing pipelines for sending the gas to the market in Europe.
The addition of the new production will take Kufpec’s production in Norway close to 25,000 boe/d.
Kufpec Chief Executive Officer, Shaikh Nawaf Saud Nasir Al-Sabah, stated: “Kufpec continues to execute its strategy to grow in profitable projects in Norway, and this transaction builds on our 2016 acquisition of Greater Sleipner Area assets from TOTAL, which included a 15% interest in Gina Krog.”
The transaction is subject to all requisite Norwegian Government approvals. Statoil holds 58.7 percent interest in the Gina Krog field. Following the completion of transaction with Total, Kufpec’s stake will increase to 30%. The remaining interest is held by PGNiG Upstream Norway (8%) and Aker BP (3.3%).
Kufpec was established by its parent company Kuwait Petroleum Corporation in 1981 to engage in exploration, development and production of crude oil and natural gas outside the State of Kuwait. It is currently active in 14 countries with 54 assets in the international upstream sector.