Norwegian energy giant Equinor has completed its transaction with Chevron Corporation, acquiring Chevron’s 40% operated interest in the Rosebank project, offshore UK.
Equinor announced the deal in October 2018, when it was subject to customary conditions including partner and authority approval. Other partners in the Rosebank project are Suncor Energy and Siccar Point Energy, which own 40% and 20% interests respectively.
The Rosebank project was discovered in 2004 in the West of Shetland region of the UK Continental Shelf (UKCS) in water depths of approximately 1,100m (3,700ft) and is one of the largest undeveloped fields in this area. Equinor described the acquisition as strengthening the company’s UK upstream portfolio, as part of its ongoing commitments to developing oil and gas projects in the UKCS.
Equinor executive vice-president for strategy Al Cook outlined these commitments in December 2018, saying in a statement: “We are putting more investments into the UK despite Brexit, the perception of North Sea as being very mature and dying and oil price gyrations. We want to make the most out of UK’s common geology with Norway.”
Equinor is the UK’s largest supplier of crude oil and natural gas. Its UKCS projects also include development of the Mariner field, one of the UK’s largest upstream investments in ten years. Potential recoverable volumes at Rosebank and Mariner are estimated at more than 300 million barrels of oil each.
Cook added: “The acquisition of Rosebank complements our portfolio of oil, gas and wind assets in this country, in line with our strategy as a broad energy company. This new investment underlines Equinor’s commitment to being a reliable, secure energy partner for the UK.”