Norwegian oil company OKEA has completed the acquisition of Wintershall's interests in three offshore fields in the Norwegian part of the North Sea. The companies first announced the agreement in May.
OKEA has acquired 35.2% operated stake in the Brage Unit, 6.4615% stake in the Ivar Aasen Unit and 6% stake in the Nova field from Wintershall Dea for an initial cash consideration of $117.5 million (subject to working capital and other adjustments) based on effective date 1 January 2022.
In addition to the fixed amount, OKEA will pay to Wintershall Dea an additional contingent consideration based on an upside sharing arrangement subject to oil price level during the period 2022-24. Wintershall Dea will retain responsibility for 80% of OKEA's share of total decommissioning costs related to the Brage Unit.
Through the acquisition, OKEA has added a new operatorship to its portfolio and increased production and reserves by 30-40%.
OKEA CEO, Svein J. Liknes said: "We are proud of being able to take over the Brage operatorship, which enhances the scale and diversification of our portfolio and strengthens our position within existing core areas. Along with the operatorship at Brage follows a highly skilled and experienced organization of more than 140 employees, which will be integrated into the OKEA organization. The operations office for Brage will continue to be in Bergen."
The assets have expected combined net production of at least 7,000 boepd in 2023 and net 2P reserves of 13.2 mmboe. On Brage, OKEA says it has identified significant upside potential and opportunities for OKEA to add value as operator.
"In addition, OKEA further increases its net interest in the Ivar Aasen field from 2.777% to 9.2385% and strengthens its position in the core area
Gjøa (OKEA 12% WI), through the Nova field. As a result of the acquisition, OKEA establishes a large presence in Bergen, as well as a strengthened presence in Stavanger," OKEA said.
With the sale, Wintershall Dea exits the Brage and the Ivar Aasen fields, and will own, as the operator, 39% of the Nova development.