DONG Energy sold ownership share in five Norwegian oil and gas fields assets to Faroe Petroleum

Offshore oil platformDONG Energy sold ownership share in five Norwegian oil and gas fields assets to Faroe Petroleum for 70 million USD. The concerned fields are Trym (50%), Oselvar (55%), where DONG Energy operates the subsea installations and Tambar (45%), Tambar East (43.24%) and Ula (20%), which are under operation of BP. Faroe Petroleum will raise money for financing the deal through loan from local finance fund and with own cash assets. The deal is estimated to add almost 20 million barrels of oil equivalent to Faroe’s reserves and an additional 8,000 barrels of oil a day to production this year. According to Faroe Petroleum the assets cost around 19 per barrel to produce last year, which keeps them effective at current oil price levels.

“It is very satisfying that we have reached an agreement with Faroe in respect of these five assets. This transaction is an important step towards optimising our oil and gas asset portfolio with a focus on high quality, low-cost assets”, said the CEO of DONG Energy, David Cook.

The production licenses are located in the Southern part of the Norwegian North Sea. The deal is subject to approval by Norwegian authorities and is expected to complete during the latter part of 2016.

DONG Energy will continue holding work share as partners in the Norwegian oil and gas fields Ormen Lange, Alve, Marulk and Gyda, and as operator of the Mjolner discovery.

Faroe Petroleum plc is an independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK.