Oslo-based exploration and production company Mime Petroleum has reached a deal with fellow independent Vår Energi to buy into the Balder, Ringhorne and Ringhorne East fields on the Norwegian continental shelf (NCS), the partners announced Monday.
Vår Energi, as 100% owner and operator of the three North Sea fields, will divest 10% interests in six licences (PL 001, PL 027, PL 027 C, PL 028, PL 028 S and PL 027 GS). The agreement will provide Mime with a 10% interest in the Balder and Ringhorne fields, as well as a 7.4% interest in the Ringhorne East field, following customary government approvals. Vår Energi will continue to operate the licences with 90 percent ownership interests.
The parties did not not disclose financial details of the transaction, but said it is expected to be complete later in 2019.
The partners plan to redevelop the Balder and Ringhorne fields through the Balder X project, which entails major future project activities such as extending the lifetime of the Jotun floating production, storage and offloading unit (FPSO) toward 2045, drilling of 20 new production wells across the Balder and Ringhorne fields. Other projects comprise an upcoming drilling program at Ringhorne and the extension of the lifetime of the Balder FPSO toward 2030. A revised plan for development and operation (PDO) is planned to be submitted in fourth quarter 2019.
Sverre Skogen, Executive Chairman of Mime, said, “We share Vår Energi’s ambitious plans to develop and maximize the Balder/Ringhorne area and we are committed to support and cooperate with the operator to ensure safe and efficient operations.
“Vår Energi is an excellent partner and the licences involved are very attractive to us, as they contain three important elements: ongoing production, a large development program and further exploration opportunities.”
Kristin F. Kragseth, CEO in Vår Energi, said, “We are happy to finalize this agreement and to secure a new partner in the Balder and Ringhorne fields. The new partner will participate and invest in our ambitious joint plans to continue the economic development of the fields. We look forward to continuing a productive cooperation with Mime Petroleum for the revitalization of the Balder and Ringhorne area.”
The acquisition is Mime’s first since its prequalification as a licensee on the NCS in June 2018.
“Our ambition is to become a leading independent E&P company in Norway, with a focus on enhancing the production and development of petroleum resources on the NCS,” Skogen said. “Our team has the knowledge and skills to pursue a full range of optimization opportunities.”