Offshore staff
TRONDHEIM, Norway — OKEA has committed to a transaction with Equinor to farm into the Statfjord area of the Norwegian North Sea, first announced in March 2023.
At the end of November, OKEA stated that completion would be postponed, following Equinor’s update on future prospects for the area.
These suggested a downgrade of 10-15% in volumes over the lifetime of the offshore assets compared with an earlier forecast, along with increased costs. The reduction in volumes was mainly due to production regularity and well performance, notably in the short term.
As a result, OKEA expected to recognize an impairment in fourth-quarter 2023, but it has agreed with Equinor to defer $60 million of the purchase price consideration until the end of January.
“After a thorough process, we have concluded that completing the transaction represents the best way forward for OKEA,” CEO Svein J. Liknes said. “We remain fully committed to the continued execution of our growth strategy as a leading mid to late-life operator on the Norwegian Continental Shelf and will work diligently with Equinor and the license partners to develop the full potential of the Statfjord Area.”
01.02.2024
