Lime Petroleum to acquire additional interest in producing Yme field

Lime Petroleum AS signed an agreement with OKEA ASA to acquire OKEA’s 15% interest in the Repsol Norge AS-operated Yme field, increasing its share in the producing Norwegian North Sea field to 25% from 10%.

 Lime will pay an initial consideration of $15.65 million. All related decommissioning costs are to be transferred to Lime. In addition, Lime will pay OKEA $9.2 million in 2027, which will be repaid to Lime in four 25% tranches upon completion of four pre-defined stages of abandonment at the field. 

Yme field lies in PL 316 and PL 316B on the Norwegian Continental Shelf in the southeastern part of the Norwegian sector of the North Sea, 130 km northeast of Ula field in water depth of 100 m.

The field comprises two separate main structures, Gamma and Beta, which are 12 km apart. The reservoirs are in sandstone of Middle Jurassic age in the Sandnes formation at a depth of 3,150 m.

Discovered in 1987, Yme began producing in 1996, but ceased operation in 2001 as it was no longer regarded as profitable. The field was redeveloped and put back into production in 2021 (OGJ Online, Oct. 25, 2021). In 2022, Lime acquired its 10% interest in the field from KUFPEC Norway AS (OGJ Online, Dec. 27 2022).

Development wells were completed this year, and the field is currently producing 20,000-25,000 boe/d (gross). With the increased share, daily production net to Lime will increase by about 3,500 boe/d this year, the company said.

An independent report by AGR Energy Services AS in March 2024 attributed 39.47 million bbl of 2P reserves to Yme field as of end-2023. The report also estimated 8.2 million bbl of 2C resources in the field.  

The deal is conditional upon Norwegian governmental approval and is expected to be completed before yearend.

Repsol is operator of the license with 55% interest. Partners are PGNiG Upstream Norway AS (20%), Lime (10%), and OKEA (15%). Following the transaction, OKEA will exit the license and Lime will hold 25%.