Total has agreed to sell a 15% interest in the Gina Krog oil and gas field in Norway to Tellus Petroleum, a subsidiary of Sequa Petroleum NV, the French oil giant announced.
The completion payment will total NOK 1.4 billion ($172 million), with the deal subject to the approval of the Norwegian authorities, Total said. On completion, Total E&P Norge AS will hold 15% of Gina Krog alongside operator Statoil with 58.7%, Tellus Petroleum with 15%, PGNiG Upstream International with 8% and Det norske ljeselskap ASA with 3.3%, according to the International Gas Report (IGR) weekly.
“As a result of a full comparative review of our global asset portfolio and in particular of our vast portfolio of opportunities in Norway, we have decided to further divest our participation in this project after the initial sale of an 8% interest in 2014,” Arnaud Breuillac, Total’s President, Exploration & Production was quoted saying.
The agreement with Total involves the purchase of 30% in PL 029C, 14.78% in PL 029C and 21.8% in PL 048, together representing 15% of the Gina Krog unit on the Norwegian Continental Shelf, IGR said in its November 2 issue based on a Sequa Petroleum announcement.
Sequa Petroleum also plans to fund the transaction with a combination of debt and equity as the Gina Krog project, which was sanctioned in 2013, is expected to start up in 2017, reported the publication, while the field’s rich gas located 30 km to the northwest of Sleipner A, will be transported to Sleipner for processing and on to Gassled for export, with the condensate and NGL will be exported via Sleipner to Norway.