Press

Faroe Petroleum: Sale of 17.5% Interest in PL586 (Fenja) to Suncor Energy Norge AS


Faroe Petroleum plc, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce that it has executed a transaction with Suncor Energy Norge AS (‘Suncor') for the sale of a 17.5% working interest in the Fenja development located in PL586 in the Norwegian Sea (the “Transaction”). Highlights of the Transaction are as follows:

  • Faroe to sell 17.5% stake in the Fenja development to Suncor for cash consideration of $54.5 million (including tax balances);
  • Faroe to retain 7.5% stake in Fenja, underlining Faroe's support for the project, and fully aligning Faroe's equity at 7.5% across the Greater Njord Area (Njord, Fenja, Bauge and Hyme);
  • Transaction is expected to reduce Faroe's future capital expenditure on Fenja to approximately £70 million (based on the operator's gross projected development cost of NOK 10.2 billion);
  • Maintains Faroe's strong balance sheet and fully funded position across its portfolio of Norwegian field developments.

Faroe remains fully committed to the Fenja development and believes the entry of Suncor further demonstrates the attractiveness of the project on a stand-alone basis and Faroe's remaining interest in Fenja will now be fully aligned with its existing 7.5% working interest in the Greater Njord Area. As detailed in the Plan for Development and Operation (PDO) submitted on 19 December 2017, the operator, VNG Norge AS, expects total gross recoverable reserves from the Fenja development of approximately 97 million barrels of oil equivalent (72% of which is oil).

The Transaction has a 1 January 2018 effective date and remains subject to the usual and customary conditions including regulatory approval of the transfer and approval of the Fenja PDO by the Norwegian Ministry of Petroleum and Energy. The Transaction is anticipated to complete during H1 2018.

Graham Stewart, CEO, commented:

“I am very pleased to welcome Suncor, a significant global integrated energy company, into the Fenja joint venture. Suncor's acquisition of a 17.5% stake in Fenja from Faroe confirms our belief in the attractiveness of this project. We look forward to working together with Suncor as the Fenja project progresses to first oil.

“This transaction marks a major milestone for Faroe, which has taken Fenja through exploration and appraisal drilling to predevelopment work and validates Faroe's business model of generating tangible shareholder returns from its exploration portfolio. Having held a significant interest in PL586 from its discovery, Faroe has now generated cash returns through a partial-monetisation while still giving shareholders exposure to future cash flows from a continuing interest in this high quality project.”


Visit source site

fp.fo/news/sale-of-17-5-interest-in-pl586-fenja-to...

DivestmentFaroe PetroleumSuncorSuncor EnergySuncor Energy NorgeNorwayUnited KingdomUK

More items from oilvoice


Petrofac: Completion of Sale of 49% of Mexico Operations

Petrofac has completed the sale of 49% of the Company's operations in Mexico to Perenco (Oil & Gas) International Limited (“Perenco”), following approval from the Federal Competition Commission of Mexico (COFECE). Under the terms of the sale, announced on 30 July 2018, Petrofac has been paid an in ...

OilVoice Press - OilVoice


Posted 9 hours agoPress > PetrofacDivestmentMexico +2

Petrofac: Completion of Sale of 49% of Mexico Operations

Petrofac has completed the sale of 49% of the Company's operations in Mexico to Perenco (Oil & Gas) International Limited (“Perenco”), following approval from the Federal Competition Commission of Mexico (COFECE).

OilVoice Press - OilVoice


Posted 9 hours agoPress

Rystad Energy's Oilfield Service Newsletter: FPSO Market Alive and Making Strides Again

The global floating production market has stirred back to life after enduring a couple years in virtual hibernation during the downturn. Last year brought some relief to the market, with six new FPSO orders worldwide , and with oil prices recovering to around $80 per barrel this year, combined w ...

OilVoice Press - OilVoice


Posted 9 hours agoOpinion > Rystad EnergyOilfield ServicesFPSO +4

Equinor Further Focuses NCS Portfolio

Equinor has signed an agreement with PGNiG to sell its non-operated interests in the Tommeliten discovery on the Norwegian Continental Shelf (NCS) for a total of USD 220 million. Tommeliten Alpha is a gas/condensate discovery that was made in 1976. Through this transaction Equinor will dives ...

OilVoice Press - OilVoice


Posted 10 hours agoPress > NCSNorwegian Continental ShelfOffshore +7

SDX Energy, Far Ltd

SDX Energy SDX has announced that the discussions with BP re a significant package of assets have been terminated by ‘mutual agreement' and the suspension of the shares has been lifted. Paul Welch, CEO said he was ‘clearly disappointed that the transaction had not materialised' and that ‘we are ...

OilVoice Press - OilVoice


Posted 20 hours agoOpinion > MalcyMalcysMalcy's +4
All posts from oilvoice