Norway’s oil and gas company, Aker BP has made a deal with JAPEX Norge, a Norwegian subsidiary of Japan Petroleum Exploration (JAPEX), to trade partial interests in two fields for the Japanese player’s Northern North Sea assets.
Aker BP, JAPEX Norge collaborate after Longboat decision to leave Norway and focus on its hydrocarbon exploration and production business in Southeast Asia, where it perceived much greater potential for such a small company, it sold its 50.1% stake in Longboat JAPEX Norge (LJN), its Norwegian JV with JAPEX, to its JV partner for $2.5 million cash.
The Japanese company’s Norwegian arm has now reached an agreement with Aker BP, under which the latter will exchange a 10% interest in its operated Alve Nord development as well as a 3.5% interest in Verdande development in return for JAPEX’s Northern North Sea portfolio and a cash consideration of $14 million.
By the end of 2022, Equinor as the operator of the Verdande subsea development received approval to replenish oil for the FPSO Norne through this project. This comprises the Cape Vulture and Alve North-East discoveries, proven in 2017 and 2020, respectively. The field is slated to come online in the fourth quarter of 2025.
The operator and its partners are of the opinion that the increased lifetime at Norne has the capability to make possible additional recovery, totaling 11 million barrels of oil equivalent until 2035, provided production from Verdande is possible.
Additionally, Aker BP, JAPEX Norge Collaborate that includes a portfolio of 15% interest in the Kjøttkake discovery (PL1182S), a 10% stake in the Kveikje discovery (PL293B/PL293CS), and a 20% interest in PL1212S. The effective date of the transaction is January 1, 2025, with completion subject to approval by Norwegian authorities.
“By increasing its stake in Kjøttkake to 45 percent and entering Kveikje with 10 percent, Aker BP strengthens its position in a high-potential cluster of discoveries,” highlighted the Norwegian oil and gas player.
JAPEX’s decision to divest its Northern North Sea portfolio follows just a few months after the company sold its UK business to Ithaca Energy.
