Faroe to add interests in five producing fields off Norway

Faroe Petroleum PLC has agreed to acquire interests in five producing oil and gas fields in the southern portion of the Norwegian North Sea from DONG E&P Norge AS for $70.2 million. The deal is effective Jan. 1, and expected to close by yearend.

Faroe will take 20% working interest in Ula field; 45% in Tambar and 37.8% in Tambar East, both of which are tie-back fields to Ula; 55% in Oselvar; and 50% in Trym. DONG operates the subsea installations Oselvar and Trym and is partner in Ula and Tambar, which are both operated by BP PLC.

LR Senergy estimates that the deal encompasses 2P reserves of 19.8 million boe. Faroe projects the deal will provide an additional 8,000 boe/d of production in 2016 and increase the group’s aggregate average production for the year to Dec. 31 to 15,000-17,000 boe/d, of which 60% is liquids and 40% is gas.

DONG will continue as partner in Norwegian fields Ormen Lange, Alve, Marulk, and Gyda, and as operator of the Mjolner discovery.

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