• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 15 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour China still to keep Iran oil flowing amid U.S. sanctions
  • 2 hours Is NAFTA dead? Or near breakthrough?
  • 8 hours China goes against US natural gas
  • 2 days Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour Japan carmakers admits using falsified emissions data
  • 2 days Renewable Energy Could "Effectively Be Free" by 2030
  • 25 mins How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 2 days Saudi Fund Wants to Take Tesla Private?
  • 15 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 1 day Why hydrogen economics does not work
Nord Stream 2 Clears Another Hurdle

Nord Stream 2 Clears Another Hurdle

Russia’s controversial Nord Stream 2…

Philippines Cracks Down On Fuel Pirates

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Faroe Signs $70 million Deal to Acquire North Sea Assets

Oseberg North Sea

Faroe Petroleum signed a $70 million deal to acquire oil and gas assets in the North Sea from Dong Energy, according to a report by Energy Voice.

The firm said it would soon open a new round of investments in order to fund the purchase and the development of the new Brasse discovery in the Norwegian sector of the same body of water.

The Telegraph reported on Faroe’s status as one of the few international energy players that has managed to stay out of debt in the ongoing oil price crisis. The firm has been “on the hunt” for bargain-priced assets during the market downturn, according to the United Kingdom-based publication.

The acquisition would involve five oil and gas fields in Norway’s North Sea, namely: a 20 percent stake in the Ula field, a 45 percent working interest in Tambar, a 37.8 percent interest in the Tambar East field, a 55 percent stake in Oselvar and a 50 percent stake in the Trym natural gas field.

In total, Faroe’s reserves will increase by 20 million barrels of oil at a rate of 8,000 barrels per day for the remainder of 2016. The company said the cost to produce energy in the fields stood at $19 per barrel in 2015.

Graham Stewart, chief executive of Faroe Petroleum, released a statement framing the deal as the expansion of an existing wing of the company.

"The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway,” Stewart says. “The acquired assets will have a material impact on production, reserves, cash flow and debt capacity."

The CEO also said the company could be making additional purchases in the North Sea in the coming months in order to rival the influence of regional competitors.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News