Norwegian oil major Statoil has agreed to acquire Wintershall Norge’s 25 percent interest in the Byrding project offshore Norway.
Statoil said on Monday it would increase its interest from 45 to 70 percent upon completion of the acquisition.
Byrding, located in production license PL090B, is an oil and gas discovery in the Norwegian part of the North Sea and is operated by Statoil.
The discovery is located about 3.8 kilometers north of Fram and 27 kilometers southwest of Gjøa which represent a focal point of Norway’s oil and gas production. Water depth in the area is 360 meters, and the reservoir is situated about 3100 meters below the sea surface.
The discovery was made in 2005 with the drilling of well 35/11-13 and was subsequently appraised by well 35/11-14 in 2006.
Gunnar Nakken, Statoil’s senior vice president for Operations West, said: “Byrding is a low-cost project that is profitable in the current oil price environment. Through this transaction, we further deepen our position in a core area for Statoil.”
Statoil and its partners in August submitted the Plan for Development and Operation for Byrding to government authorities.
According to Statoil, capital expenditures are estimated at NOK 1 billion ($121.8 million), reduced from an initial estimate of NOK 3.5 billion. Recoverable volumes are projected at 11 million barrels of oil equivalent.
The company said the agreement is a further acquisition by Statoil in core areas, following an increase in the Wisting discovery in the Hoop area of the Barents Sea in September and transactions for the Utgard field near Sleipner in the North Sea during 2015 and 2016.
The field is scheduled to come on stream in the third quarter of 2017. The project will thus yield a return in the same year as investments are made.
The effective date of the transaction is January 1, 2016. Closing is subject to customary conditions, including authority approval.