Aker BP agreed to swap its 3.3% interest in the non-operated Gina Krog field and an 11.92% interest in License 127C with PGNiG Upstream Norway AS in exchange for a 5% interest and operatorship in License 838 and a cash consideration.
PGNiG Upstream Norway’s total working interest in Gina Krog field on the Utsira High in the Norwegian North Sea will increase to 11.3% after the swap. Oil and gas production from the field commenced in 2017 and last year it amounted to 19.9 MMboe, of which PGNiG’s share was 1.6 MMboe (OGJ Online, July 3, 2017). The remaining oil and gas reserves of Gina Krog are estimated at 172.5 MMboe. Increased share in the field positions PGNiG to send greater volumes of gas to Poland after the start-up of the Baltic Pipe, PGNiG said in a release.
License 127C contains the Alve Nord discovery and the Alve NE prospect, which lie in the Aker BP operated Skarv area in the Norwegian Sea (OGJ Online, Jan. 4, 2013). Aker BP plans to drill an exploration well in the license this year.
License 838 contains the recent Shrek discovery near Skarv field (OGJ Online, Feb. 6, 2020). The transaction and the transfer of operatorship to Aker BP will enable development of the discovery as a tie-back to the Skarv FPSO. The license also holds further exploration potential, Aker said. According to PGNiG, the intent is that PGNiG will resume operatorship of PL838 once Shrek begins producing.
Cash consideration to Aker BP of up to $62 million consists of a firm payment of $51 million upon closing and an additional $11 million contingent on development of the Alve Nord discovery.
Following the deal’s close, subject to approval by Norwegian authorities, Aker BP will hold 35% interest in License 838 and 88.0825% interest in License 127C. It will have fully divested its interest in Gina Krog field.
