French oil major Total has agreed to acquire 65.625% in a central North Sea license through two separate deals announced today and yesterday.
Today, Norwegian Energy Company (UK) Ltd (Noreco), said it had agreed to sell 35% in license P2032, also called Valleys, to Total E&P UK.
Noreco will retain a 15% stake. Total will compensate Noreco by carrying Noreco’s share of seismic costs. If an exploration well is drilled, Total will also cover drilling costs.
Image: Total's current assets in the UK North Sea
Yesterday, Trapoil said it had agreed to sell a 30.625% stake in Valleys by funding 43.75% of Trapoil's current 50% interest, covering certain costs up to and including the drilling of an exploration well.
Following completion of the Agreement, the partners in Valleys will be Noreco, with 15%, Total with a 65.625%, and Trap Oil, with 19.375%.
As part of its agreement with Total, Trapoil could, within two months, instead elect to exchange between 10-35% of its current interest in Valleys for an equivalent equity interest in License P1816 (Block 29/15a)(Scaranish), operated by Total.
Mark Groves Gidney, Chief Executive Officer of Trapoil, said: “The option to be involved in the Scaranish prospect offers Trapoil an exciting opportunity to be part of the drilling of a key well in the area. Information gained from drilling this well is likely to be important in unlocking the potential of our nearby Romeo discovery drilled earlier this year."
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