Sequa Petroleum takes 15% interest Gina Krog field

Tellus Petroleum AS, a subsidiary of Sequa Petroleum NV, has agreed to acquire 15% interest in Gina Krog oil and gas field on the Norwegian Continental Shelf from Total E&P Norge AS for 1.4 billion kroner.

The deal encompasses interests of 30% in PL 029C, 14.78% in PL 029C, and 21.8% in PL 048, and total 2P reserves of 33 million boe net to Tellus, according to data from the Norwegian Petroleum Directorate.

The field is operated by Statoil ASA with 58.7% interest. Partners are Total SA 30%, PGNiG 8%, and Det Norske Oljeselskap ASA 3.3%. Production is expected to start in mid-2017, ramping up to a plateau of 10,000 boe/d net to Tellus.

Upon completion of the sale, Total will retain 15% interest.

“As a result of a full comparative review of our global asset portfolio and in particular of our vast portfolio of opportunities in Norway, we have decided to further divest our participation in this project after the initial sale of an 8% interest in 2014,” said Arnaud Breuillac, president, Total E&P.

The interest sold by Total in 2014 went to PGNiG Upstream International, the Norway-focused subsidiary of PGNiG (OGJ Online, Oct. 28, 2014).

Total holds interests in 97 production licenses—31 of which it operates—on the NCS. Total E&P Norge AS is one of the largest contributors to the group’s equity production, with 242,000 boe/d in 2014.

Gina Krog field lies in 110-120 m of water about 250 km west of Stavanger and 30 km northwest of the Sleipner A installation. The plan for development and operation was approved in June 2013. Gross capex on Gina Krog is 32 billion kroner.

Development involves a steel platform on a jacket substructure similar to nearby Edvard Grieg and Ivar Aasen development projects. The Gina Krog jacket was installed in June and predrilling commenced in July using the Maersk Integrator jack up rig (OGJ Online, July 23, 2015).

Gina Krog oil will be transported to a floating storage vessel with a capacity of 850,000 bbl for offloading to shuttle tankers. Rich gas will be transported to Sleipner for processing and onto Gassled for export. Condensate and NGL will be exported via Sleipner to Karsto in Norway.

The Tellus-Total deal, which is effective Jan. 1, is expected to close by yearend contemporaneously with the completion of the Tellus-Wintershall Holding GMBH deal reported in June.

In the Wintershall deal, Tellus, a Norwegian independent solely focused on the NCS, agreed to purchase an asset portfolio consisting of 20% interest in Knarr field, 15% in Ivar Aasen field, 15% in Maria field, and 4.5% in Veslefrikk field. Concurrent with the deal, Tellus became a subsidiary of Sequa Petroleum on Sept. 24.

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