Noreco settles offshore Denmark liabilities

Offshore staff

STAVANGER, NorwayNorwegian Energy Co. (Noreco) has reached agreement with its joint venture partners in the Danish North Sea on its forfeited licenses and related abandonment liabilities.

The company has terminated its participation in the DONG-operated Nini and Cecile oil fields and transferred its interests in the licenses to the partners on a pro-rata basis.

In addition, the settlement for claims on defaulted cash calls and capping of the abandonment liability includes a cash consideration of NOK 60 million ($7.6 million), and an 18.2% interest in the producing Lulita field.

Noreco will not be held liable for abandonment costs beyond the restricted cash. Final closing of the agreement remains subject to approval by the Danish Energy Agency.

The company retains full ownership of the insurance claim for the Siri platform, which receives production from Nini and Cecile, and 10% of Lulita.

07/02/2015

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