OKEA, M Vest acquire NCS assets from Neptune Energy

OKEA ASA and M Vest Energy AS have agreed to acquire certain Norwegian Continental Shelf assets from Neptune Energy Group Ltd.

The divested assets include producing Draugen, Brage, and Ivar Aasen fields, as well as the Edvard Grieg oil pipeline and Utsira High gas pipeline. Neptune will no longer hold participating interests in the assets.

OKEA is to acquire a 2.2% interest in the Ivar Aasen field, increasing its ownership share to 2.777%. M Vest is to acquire a 0.8% interest in the Ivar Aasen Unit, 7.56 % in Draugen field, 4.4% in the Brage Unit, 1.2% in the Edvard Grieg oil pipeline, and 1.8% in the Utsira High gas pipeline.

The transaction between OKEA and Neptune is subject to the completion of the transaction between Neptune and M Vest and customary governmental approvals. Upon completion of the deal, OKEA’s production outlook for 2022 will increase to 18,000-19,000 boe/d from 17,000-18,000 boe/d.

The sales total up to $35 million. All decommissioning liabilities will be transferred to the buyers. The effective date for the agreements is Jan. 1, 2022, subject to Ministry approval.