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Equinor to Divest Stake in King Lear Discovery to Aker BP
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Equinor ASA (EQNR - Free Report) intends to divest 77.8% stake in the King Lear discovery on the Norwegian Continental Shelf (NCS) to Aker BP. The company has inked an agreement with Aker BP relating to the same for a total purchase consideration of $250 million.
King Lear, a gas/condensate discovery made in 1989, lies in PL 146 and PL 333 blocks in the Ekofisk area of the NCS. The discovery is estimated to hold net recoverable resources of 77 million barrels of oil equivalent.
The transaction closure awaits customary conditions, which includes the approval of partners and authority.
The sale is part of a process to rationalize Norwegian portfolio and focus on projects that provide higher returns. Aker BP anticipates that the deal will boost capacity utilization in its Ula facilities and provide considerable additional volumes of injection gas to support increased oil recovery. Several oil companies are reorganizing their portfolios and divesting assets. These include Enbridge Inc (ENB - Free Report) , ConocoPhillips (COP - Free Report) and Devon Energy Corp (DVN - Free Report) .
In another announcement made by the company, the Oseberg Vestflanken 2 field in the North Sea has become operational. The project that was completed below budget is estimated to hold recoverable resources of 110 million barrels. Remote-operated from the Oseberg field centre, the Oseberg H is the first unmanned platform on the NCS.
The final project included an amount of NOK 6.5 billion, more than 20% less than the initial projection at the time of the plan for development and operation (PDO). The breakeven price has been lowered to below $20 from $34 per barrel, which strengthens a development that is already highly lucrative.
This new concept offers a competitive substitute in developing smaller discoveries.
Askepott jack-up rig, which is owned by the Oseberg license, will drill 11 wells on Oseberg Vestflanken 2. Of the total, nine wells will be drilled through the Oseberg H platform and two through an existing subsea template. Pipelines and subsea equipment have also been installed.
Significant investments have been made by the NCS operators over a long period for the development of major infrastructure related with expansion of the big fields. Further, investments will yield by phasing in smaller near-field oil and gas deposits through the existing infrastructure.Production of smaller volumes will be profitable while expanding field life and activity level of the big fields.
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Equinor to Divest Stake in King Lear Discovery to Aker BP
Equinor ASA (EQNR - Free Report) intends to divest 77.8% stake in the King Lear discovery on the Norwegian Continental Shelf (NCS) to Aker BP. The company has inked an agreement with Aker BP relating to the same for a total purchase consideration of $250 million.
King Lear, a gas/condensate discovery made in 1989, lies in PL 146 and PL 333 blocks in the Ekofisk area of the NCS. The discovery is estimated to hold net recoverable resources of 77 million barrels of oil equivalent.
The transaction closure awaits customary conditions, which includes the approval of partners and authority.
The sale is part of a process to rationalize Norwegian portfolio and focus on projects that provide higher returns. Aker BP anticipates that the deal will boost capacity utilization in its Ula facilities and provide considerable additional volumes of injection gas to support increased oil recovery. Several oil companies are reorganizing their portfolios and divesting assets. These include Enbridge Inc (ENB - Free Report) , ConocoPhillips (COP - Free Report) and Devon Energy Corp (DVN - Free Report) .
In another announcement made by the company, the Oseberg Vestflanken 2 field in the North Sea has become operational. The project that was completed below budget is estimated to hold recoverable resources of 110 million barrels. Remote-operated from the Oseberg field centre, the Oseberg H is the first unmanned platform on the NCS.
The final project included an amount of NOK 6.5 billion, more than 20% less than the initial projection at the time of the plan for development and operation (PDO). The breakeven price has been lowered to below $20 from $34 per barrel, which strengthens a development that is already highly lucrative.
This new concept offers a competitive substitute in developing smaller discoveries.
Askepott jack-up rig, which is owned by the Oseberg license, will drill 11 wells on Oseberg Vestflanken 2. Of the total, nine wells will be drilled through the Oseberg H platform and two through an existing subsea template. Pipelines and subsea equipment have also been installed.
Significant investments have been made by the NCS operators over a long period for the development of major infrastructure related with expansion of the big fields. Further, investments will yield by phasing in smaller near-field oil and gas deposits through the existing infrastructure.Production of smaller volumes will be profitable while expanding field life and activity level of the big fields.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>