Norwegian energy group Statoil has entered into a swap agreement with Lundin Petroleum to divest its entire 15% stake in the Edvard Grieg field (9% interest in the Edvard Grieg oil pipeline and a 6% stake in the Utsira High Gas pipeline) and to pay an additional cash consideration of US$68m to Lundin Petroleum for an increased stake in that company.
Following completion of the transaction Statoil will own approximately 68.4 million shares of Lundin Petroleum, corresponding to 20.1% of the shares and votes. The effective date of the divestments of these assets is 1 January 2016. The transaction is expected to close in late July 2016.
Lundin Petroleum is currently owned by investments companies owned by the Lundin family (31.4%), Statoil (11.9%) and various funds. The company owns a 22.12% stake in the Johan Sverdrup oil field, with recoverable resources of between 1.7-3.0 Gboe over 50 years. The field will be developed in several phases: phase 1 (315 000-380 000 bbl/d) planned for late 2019, phase 2 scheduled for 2022 and full production estimated at 550 000-650 000 bbl/d afterwards. Statoil holds 40.03% of the project, Lundin Norway 22.12%, Petoro 17.84%, Det norske oljeselskap 11.89% and Maersk Oil 8.12%.