In a strategic move aimed at optimising resource management and driving higher value creation, Equinor ASA and Petoro AS have entered into a value-neutral asset swap agreement in the Haltenbanken area of the Norwegian Sea.
This agreement is designed to harmonise and equalise their ownership interests across several oil and gas fields and discoveries in the region.
Described as a “value-neutral” agreement, the assets exchanged are considered to have equal value for both companies.
The swap aims to align ownership around larger production hubs, which is expected to enable long-term value creation, simplify commercial agreements, lower operating costs, and accelerate new developments with added production at a lower cost.
Kjetil Hove, Equinor‘s Executive Vice President for Exploration and Production Norway, emphasised the strategic importance of this alignment.
“We have a strategy to continue the development and the value creation on the Norwegian continental shelf and expect to maintain a high production with lower emissions towards 2035. Alignment of ownership around the larger production hubs are important enablers for long-term value creation,” Hove stated.
Heidrun and Tyrihans are two of the largest producing fields in the Halten area of the Norwegian Sea.
Heidrun, in particular, is notable for having one of the longest remaining operational lifespans on the Norwegian continental shelf.
Hove further noted: “Although this is a value-neutral swap, this alignment of ownership will add more value to all parties from the Halten area over time. Balanced partnerships will simplify commercial agreements, lower operating costs, and accelerate new developments with added production at a lower cost.”
Currently, Equinor holds a 13 per cent interest in the Heidrun field, while Petoro has a 57.8 per cent stake.
For Tyrihans, Equinor’s ownership stands at 58.8 per cent, with Petoro holding no equity.
Post-transaction, Equinor will own 34.4 per cent in Heidrun and 36.3 per cent in Tyrihans, while Petoro will own 36.4 per cent in Heidrun and 22.5 per cent in Tyrihans.
Equinor’s stake in Johan Castberg will be 46.3 per cent.
The agreement is subject to various regulatory approvals and the approval of the Norwegian Parliament.
The effective date for the agreement is set for January 1, 2025.
Through this swap, Equinor and Petoro aim to optimise their operations in the Haltenbanken area, ensuring efficient resource management and enhanced value creation from their activities on the Norwegian Continental Shelf.