Tellus Petroleum, a 100% subsidiary of Sequa Petroleum, has cancelled a deal to buy interest in the four fields on the Norwegian continental shelf from Wintershall due to the current market environment.
Wintershall, a 100% BASF subsidiary, had originally planned to divest assets in the four non-operated fields Knarr (20%), Veslefrikk (4.5%), Ivar Aasen (6.4615%) and Yme (10%) on the Norwegian continental shelf to Tellus Petroleum. The planned transaction also involved a 15% stake in the Wintershall-operated Maria development as well as seven exploration licenses.
The agreed purchase price for the transaction was $602 million, of which $40 million was subject to the Maria Field development being approved by the Norwegian Ministry of Petroleum and Energy.
Following discussions, Wintershall and Tellus have agreed not to proceed with the Wintershall-Tellus transaction, announced on June 18, 2015, Sequa Petroleum said on Wednesday.
Furthermore, Tellus is evaluating the Ivar Aasen transaction with OMV in the light of the decision not to proceed with the Wintershall-Tellus transaction.
Tellus is progressing with the preparations for financing the Gina Krog transaction with Total, with the transaction planned to close early in 2016. To remind, in October 2015, Tellus signed an agreement with Total E&P 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.