By the OGJ Online Staff
HOUSTON, Jan. 8 -- Petroleum Geo-Services ASA is buying Norsk Hydro AS's 42% share in production license 038 in the Norwegian sector of the North Sea.
Other owners of the license, which contains Varg field, are the State's Direct Financial Interest with 30% and Statoil ASA with 28%. PGS will be operator.
As compensation for the license, which includes three separate undeveloped prospects, PGS will assume Norsk Hydro's portion of the $6-10 million field abandonment liabilities for Varg field.
PGS said the undeveloped fields on the license will be evaluated and will either be developed with the Petrojarl Varg floating production, storage, and offloading vessel, or sold to other oil companies.
Norsk Hydro said the sale, which is contingent on the approval of Norwegian authorities, is consistent with its focus on other key areas.
Petroleum Geo-Services said its involvement would result in an extension of engagement for the Petrojarl Varg.
PGS Chairman and CEO Reidar Michaelsen said, "This [deal] illustrates PGS' continued commitment to its long term strategy in the production market, namely to share more equitably in the values we create through our services."
