Equinor UK Ltd. agreed to acquire the UK exploration and production business of Suncor Energy, Suncor Energy UK Ltd., for $850 million.
The deal includes a non-operated interest in the producing Buzzard oil field (29.89%), an additional operated interest in the Rosebank development (40%), and Suncor employees based in the UK who work with the assets.
Equinor said $250 million of the North Sea asset deal consideration is contingent upon a final investment decision for Rosebank, which is targeted for this year subject to the UK Government’s and partners’ approval.
Rosebank oil and gas field lies about 130 km west of the Shetland Islands on the UK Continental Shelf. Development has been optimized to reduce carbon emissions and the FPSO will be prepared for future electrification in line with the North Sea Transition Deal, Equinor said. Expected recoverable resources are about 300 million bbl of oil.
Production from the field will be through subsea wells tied back to a redeployed FPSO for processing and offloading at the field.
CNOOC-operated Buzzard field consists of four fixed platforms and three subsea manifolds. The field is producing about 60,000 boe/d. Liquids are exported via the Forties Pipeline system to Hound Point Terminal where the crude is lifted and sold in the open market. Gas volumes are exported via the FUKA system.
With the deal, Equinor adds about 15,000 boe/d in equity share in 2023, the company said in a release Mar. 3.
The transaction, subject to relevant regulatory approvals, is expected to close mid-2023. Post close, Equinor's share in Rosebank would increase to 80% with Ithaca Energy holding the remaining 20%.
