VNG Norge farms in to Norwegian offshore licenses

VNG Norge will take a 20% interest in licenses PL 270 and PL 426 in Block 35/3 on the NCS under an agreement it has signed with Endeavour Energy Norge.

Uchenna Izundu
International Editor

LONDON, Aug. 28 -- VNG Norge AS will take a 20% interest in licenses PL 270 and PL 426 in Block 35/3 on the Norwegian Continental Shelf under an agreement it has signed with Endeavour Energy Norge AS.

VNG will contribute towards exploration costs to acquire the working interests in the blocks, which are considered mainly natural gas prone. The area contains the Agat gas discovery. The blocks cover more than 100,000 acres in a prolific oil and gas trend north of Gjoa field—under development by Statoil—and other nearby undeveloped gas resources.

For both licenses, the partners will continue to carry out further geological and geophysical evaluation. No details were given on when they plan to drill the first well.

Endeavour estimates that PL 270 and PL 426 contain more than 1.6 tcf of gross unrisked gas equivalent resources, including the Agat discoveries and other identified prospects and leads.

When the deals are concluded, Endeavour will retain a 65% working interest in both blocks, VNG Norge will have 20%, and RWE Dea Norge AS will hold 15%. The agreement is subject to government approval.

Endeavour will increase its working interest in PL 270 and will replace RWE Dea as operator of the license. In exchange, Endeavour will transfer a portion of its interest in PL 426, of which it was already operator, to RWE Dea. These changes will become effective Aug. 31.

Contact Uchenna Izundu at uchennai@pennwell.com.

More in Exploration & Development