Offshore staff
STOCKHOLM, Sweden – Lundin Energy Norway has agreed to acquire OMV’s 25% interest in the Wisting oil field in the Hoop area of the southern Barents Sea for $320 million.
Wisting, in licenses PL537 and PL537B, holds an estimated 500 MMbbl of oil.
The acquisition increases Lundin’s stake in Wisting to 35% working interest. The other partners are Equinor (35%), Petoro (20%), and Idemitsu (10%).
Equinor is the operator during the development phase, and operatorship is planned to transfer to OMV for the operations phase. Prior to completion of the transaction, the license partners will work with the Ministry of Petroleum and Energy to clarify arrangements for the operations phase.
The transaction, which has an effective date of Jan. 1, 2021, is subject to the customary Norwegian regulatory approvals, and is expected to be completed during 4Q 2021.
According to Lundin, Wisting will be one of the largest development projects in Norway over the next few years and become the next Barents Sea production hub. Concept selection is anticipated soon. The plan for development and operation is expected to be submitted by the end of 2022 to qualify for the temporary tax incentives established by the Norwegian government in June 2020.
First oil is targeted for 2028.
10/28/2021
