Rosneft completed a farmout of a 49% interest in KrasGeoNac LLC to Equinor for $550 million including a cash consideration of $325 million at the Jan. 1, 2019, effective date and customary adjustments.
KrasGeoNaC holds 12 conventional onshore exploration and production licenses in Eastern Siberia. One of the licenses, the North Danilovsky development, began production in July and is expected to reach 40,000 b/d of oil by 2024, with plans to increase production to 70,000 b/d of oil.
As part of the agreement, Equinor has redirected its remaining exploration commitments offshore in the Sea of Okhotsk and as such has no outstanding obligations in that area.