Statoil and First Oil have completed their previously announced transaction, whereby Statoil acquired First Oil’s 24% share in the UK licence for the Alfa Sentral field for USD 15 million.
On 2 October 2015, Statoil acquired First Oil’s 24% equity share in the UK licence for the Alfa Sentral field for USD 15 million.
Alfa Sentral is a c.60 mmboe gas and condensate field planned to be developed as a tie-back to the existing infrastructure for Sleipner on the Norwegian Continental Shelf (NCS), which Statoil operates. Alfa Sentral will therefore increase the utilisation of the Sleipner facilities.
“Statoil has set ambitious goals for future activity, production and value creation. This transaction demonstrates the potential on both the UK and Norwegian side of the Continental Shelf. The acquisition of this Alfa Sentral licence increases the resource base and strengthens our efforts to further develop the Sleipner area towards 2030", says Mette Halvorsen Ottøy, senior vice president for the operations south cluster in Development & Production Norway (DPN).
Through this transaction Statoil has taken a 24% interest in UK Continental Shelf (UKCS) licence P312 which, with licence PL046 on the NCS, comprises the Alfa Sentral field. Statoil is the operator in PL046 with a 62% holding.
As a result, Statoil has increased its equity holding in a high priority project in a core area, deepening its presence on both the NCS and UKCS. The transaction is expected to close by the end of 2015.
Concept selection for the Alfa Sentral project was passed in September 2015. Negotiations to unitise the field will commence shortly. A final investment decision is planned for late 2016 with production start-up in 2020.
Date: Nov 17, 2015