Equinor ASA EQNR has concluded the sales of two non-core discoveries on the Norwegian Continental Shelf (NCS) that were announced in October 2018.
The first sale comprises 77.8% operated interest in the King Lear discovery to Aker BP for a total consideration of $250 million.
King Lear, a gas/condensate discovery made in 1989, is located in PL 146 and PL 333 blocks in the Ekofisk area of the NCS. The discovery is estimated to hold net recoverable resources of 77 million barrels of oil equivalent.
The second sale includes non-operated interests of 42.38% in the Tommeliten Unit (PL044 TA) and 30% in PL044 to PGNiG for a total consideration of $220 million.
ConocoPhillips COP operated Tommeliten Alpha, a gas/condensate discovery made in 1976, is estimated to hold net recoverable resources of 52 million barrels of oil equivalent.
The sale is part of the company’s process to rationalize Norwegian portfolio and focus on projects that provide higher returns. Aker BP anticipates that the deal will boost capacity utilization in the Ula facilities and provide considerable additional volumes of injection gas to support higher oil recovery. Several oil companies are reorganizing portfolios and divesting assets. These include Enbridge Inc ENB, ConocoPhillips and Devon Energy Corp DVN.
Significant investments have been made by the NCS operators for the development of infrastructure and expansion of large fields. Further, investments will yield by phasing in smaller near-field oil and gas deposits through existing infrastructure. Production of smaller volumes will generate profits as well as expand field life and activity level of the big fields.
Currently, Equinor carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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