Equinor UK Limited has announced that it has entered into an agreement to acquire Suncor Energy UK Limited for a total consideration of $850 million.
In a statement posted on its website, Equinor highlighted that the deal includes a 29.89 percent non-operating stake in the Buzzard oil field, an additional 40 percent stake in the Rosebank development and Suncor employees based in the UK that work with the assets.
The deal, which Equinor said is subject to relevant regulatory approvals, will add approximately 15,000 barrels of oil equivalent per day of capital by 2023 and “create synergies with Equinor’s existing operations,” the company noted.
Buzzard, which is operated by CNOOC International, currently produces approximately 60,000 barrels of oil equivalent per day, Equinor noted. Predicted recoverable resources at Rosebank, which is operated by Equinor, are approximately 300 million barrels of oil, according to the company, which noted that $250 million of the consideration is contingent on a final investment decision for Rosebank. Completion of the deal would increase Equinor’s stake in the project to 80 percent.
“This transaction is in line with Equinor’s strategy to optimize our oil and gas portfolio and deepen our core countries,” said Philippe Mathieu, Equinor’s executive vice president of International Exploration and Production, in a company statement.
“We are building on our long-standing position as the UK’s broadest energy partner, strengthening our position as a reliable energy supplier in Europe, while continuing to deliver on our ambition to become a net zero company,” added.
Clear example
In a statement posted on its website, Suncor Energy said it had entered into a share purchase agreement with Equinor UK Limited for the sale of Suncor Energy UK Limited, which it noted includes Suncor’s non-operated offshore interests in north sea
“The decision to sell our UK exploration and production business is a clear example of our commitment to optimizing our asset portfolio,” Kris Smith, Suncor’s interim chairman and chief executive, said in a statement of the company
“Having the right ‘fit and focus’ across our portfolio allows us to ensure effective capital allocation consistent with our strategic objectives and focus our organization on delivering value to the rest of our portfolio, including our exploration and production on Canada’s east coast,” Smith added in the statement.
Rigzone has asked UK industry body Offshore Energies UK (OEUK) for comment on the Equinor-Suncor deal. At the time of writing, Rigzone has not yet received a response from OEUK.
Recent offers
Earlier this month, Equinor announced that it had signed an agreement to acquire a stake in five discoveries in the Troll, Fram and Kvitebjørn area of the North Sea on the Norwegian continental shelf from Wellesley Petroleum AS. The transaction adds an additional 18.8 percent to Grosbeak, 45 percent to Toppand, 40 percent to Atlantis and 20 percent to Røver Nord and Røver Sør, Equinor noted.
In February, Equinor revealed that it had signed an agreement with Liwathon for the sale of the Equinor South Riding Point oil terminal on the island of Grand Bahama in the Bahamas. Equinor bought the terminal in 2009.
Also in February, Suncor Energy announced that it had closed a transaction to purchase an additional 14.65 percent interest in the Fort Hills project from Teck Resources Limited. After the deal, Suncor and its subsidiary’s total interest in the project is 68.76 percent, Suncor noted, adding that it is the operator of the Fort Hills project through an operating services agreement.
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