Sequa Petroleum has decided not to progress with the acquisition of interests in the Gina Krog and Ivar Aasen fields, both located in the North Sea.
Sequa Petroleum, an oil and gas company registered in the Netherlands, said on Tuesday the decision was made due to current market conditions.
The company planned to acquire a 15% interest in the Gina Krog field from the French oil major Total, and 0.554% interest in the Ivar Aasen field from the Austrian oil company OMV.
In October 2015, Sequa, through its subsidiary Tellus Petroleum, signed an agreement with Total E&P Norge to purchase interests of 30% in PL 029C, 14.78% in PL 029C and 21.8% in PL 048, representing 15% in the Gina Krog.
The deal for the acquisition of the Gina Krog interest was subsequently approved by the Norwegian government on the basis of an effective date of January 1, 2015.
The agreement with OMV for the acquisition of interest in the Ivar Aasen field, for a total consideration of up to NOK 45 million, was also signed in October 2015.
Sequa noted on Tuesday that, further to the notice to bondholders on April 11, 2016 regarding the company’s $300,000,000 5 percent convertible bonds due 2020, the company has decided not to implement the consent received, which leaves the bond terms unchanged and trading in the bonds will be unblocked before close of trading on today’s date.
The Gina Krog field is operated by Statoil (58.7%) and partners are Total (30%), PGNiG (8%) and Det norske (3.3%).
Ivar Aasen field is operated by Det norske, with 35 percent interest. The partners in the field are Statoil, Bayergas, Wintershall, VNG, Lundin, and OMV.
Offshore Energy Today Staff