The first stage of a strategic alliance between BP Exploration and Norway's Den norske stats oljeselskap AS is in place.
They have signed an agreement covering exploration and production in three frontier regions: China and Vietnam, West Africa, and the Soviet Union.
The companies also are close to signing an agreement covering research and development.
A similar accord for joint marketing of gas in Britain and use of new and existing North Sea infrastructure to transport gas to U.K. and continental European markets is more complex. There was no word on when it might be signed.
EXPLORATION, PRODUCTION
Under the exploration and production agreement, Statoil will pay $40 million for a one-third share of BP interests off China and Vietnam and onshore in Congo.
Statoil also will obtain a 50% interest in a BP license off Angola.
BP and Statoil are already cooperating in a venture in the Soviet Union.
Joint ventures will be established for each license, subject to approval of partners and regulatory authorities.
BP will retain its present operatorships.
Statoil will take interests ranging from one-third to one-half in future license interests in the designated areas. It will become an operator as soon as practical.
Exploration and development work in existing and future license interests will be carried out by jointly staffed project teams, with individual projects handled from the U.K. or Norway.
John Browne, BP Exploration chief executive officer, called the agreement a major step toward wider collaboration between the two companies.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
