E.On Ruhrgas assumes Huntington operatorship

Oilexco North Sea Ltd. has lost operatorship of the Huntington license in the UK North after its partners voted unanimously to transfer it to E.On Ruhrgas UK Exploration & Production Ltd.

Jan 12th, 2009

Uchenna Izundu
International Editor

LONDON, Jan. 12 -- Oilexco North Sea Ltd. has lost operatorship of the Huntington license in the UK North after its partners voted unanimously to transfer it to E.On Ruhrgas UK Exploration & Production Ltd.

Ernst & Young has become the administrator of Oilexco, which failed to secure a loan from the banks amid the credit crunch for its drilling and development program.

"The operatorship change will ensure progression on the development in line with the partnership's plans," said Norwegian Energy Co. ASA, a partner in the field.

Huntington is potentially one of the largest discoveries in the last 5 years; it was put on a fast track to come on stream early in 2010. It is estimated to have up to 150 million bbl of oil in place.

Oilexco will become a nonoperating partner in the license, according to Noreco. The operatorship change became effective Jan. 12.

Contact Uchenna Izundu at uchennai@pennwell.com.

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