Equinor has agreed to sell a 40.8125 per cent interest in and transfer operatorship of the Bressay oil field development on the UK continental shelf to independent UK-based petroleum exploration and production company, EnQuest.

The initial consideration is GBP 2.2 million, payable as a carry against 50 per cent of Equinor’s net share of costs, with a contingent consideration of USD 15 million following authority approval of a field development plan for Bressay.

Equinor’s senior vice president for UK and Ireland offshore, Arne Gürtner, said the transaction supports Equinor’s strategy to continually optimise its portfolio.

“We welcome EnQuest as the new operator of Bressay and believe the knowledge and experience both parties can share from our existing Mariner and Kraken developments will further strengthen the project.”

The Bressay oil field lies in the Northern North Sea, 50 kilometres northeast of Mariner. The oil field was discovered in 1976 and Equinor became operator in 2007.

The concept selection for the field development was deferred in 2016 due to challenging market conditions and the need to simplify the development concept.

“We look forward to working with EnQuest and the U.K. authorities to progress the Bressay project,” added Mr Gürtner.

The transaction is subject to customary conditions, including partner and authority approval, with an estimated completion date in Q4 2020.

Following completion, EnQuest will have 40.8125 per cent interest and operatorship and Equinor will have 40.8125 per cent, with Chrysaor retaining a 18.375 per cent interest.