Offshore staff
TRONDHEIM, Norway – OKEA is looking to raise around NKr110 million ($13.2 million) via new shares to assist its E&P growth plans offshore Norway.
In June, the company agreed to acquire A/S Norske Shell’s 44.56% interest in theDraugen oilfield in the Norwegian Sea and 12% interest in the Gjøa field in the North Sea for NKr4.5 billion ($539 million).
These interests currently represent production of around 20,000 boe/d.
The deal is fully funded by an equity commitment from OKEA’s majority owner Seacrest Capital Group and co-investor Bangchak Corp.
Analyst Wood Mackenzie said the transaction was one of many in the North Sea in recent years supported byprivate equity.
The influx of this type of investment has generated a new momentum in the North Sea, it added, revitalizing offshore facilities and extending the life of fields.
Neivan Boroujerdi, senior research analyst, North Sea upstream, said that although OKEA cannot yet demonstrate a track record, “by being a first mover it is in control of its own destiny.
“Success (or lack of) here, could shape future investor sentiment for more E&P opportunities.
“It’s been a transformative couple of years for OKEA. Backed by the management team that launched Det Norske (now Aker BP), it is now producing over 20,000 b/d and generating free cashflow…
“A challenge will be avoiding the ‘mid-cap trap’ that similar-sized companies have fallen into before: having a portfolio heavily weighted towards a handful of assets that ultimately underperformed. Further growth will be the ultimate goal.”
09/11/2018
