Equinor has entered into an agreement to divest 28 per cent working interest in PL037 (Statfjord area) to OKEA with an effective date 1 January 2023.

The total consideration is US$220 million plus a contingent payment element based on oil and gas prices over a three-year period.

Camilla Salthe, senior vice president for Field Life Extension, FLX said with the transaction, the company will continue to optimise its oil and gas portfolio, welcoming an industrial player with late-life expertise into the Statfjord partnership.

“This will contribute to diversification and high value-creation from the Statfjord area in the years to come.”

FLX is a unit within Equinor that is responsible for safe and efficient operations of late life assets through new ways of working.

“Taken together with the recent acquisitions from Wellesley in Norway, the transaction demonstrates Equinor’s approach to long term portfolio optimisation and high-grading,” adds Salthe.

In December 2021, Equinor signed an agreement with Spirit Energy to acquire its interests in the Statfjord area. The acquisition resulted in Equinor holding a 78.6 per cent working interest in Statfjord Unit, with Vår Energi holding the remaining interest. Following the transaction with OKEA, Equinor will have a 54.7 per cent working interest and remain the operator of the Statfjord field.

Since production start in 1979, Statfjord has produced more than 5.1 billion barrels of oil equivalent and created gross revenues of over NOK 1,675 billion (AU$2.39 billion).

“We still have high expectations for Statfjord and by developing new ways of working we aim to extend the lifetime of the field towards 2040 and reduce emissions with 50 per cent by 2030,” adds Salthe.

The closing of the transaction is subject to customary government approval and is expected to be completed in fourth quarter of 2023.