Norwegian Energy Co. (Noreco) has been served a notice of default on the North Sea Huntington license.
The notice comes after the firm failed to make payments as a joint operating partner in the license and not finding a buyer for its 20% stake in the field.
According to a statement by Noreco, the default implies it will no longer receive revenues from production on the Huntington field and the other partners are now entitled to take over Noreco's stake after 45 days.
Forfeiture of its stake is likely to cost the firm about NOK 60 million (US$670,000). The total loss for Noreco related to the investment in Huntington will after this amount to approximately NOK 590 million ($66.3 million), said Noreco.