In a recent farm-down, Statoil (NYSE:STO) and ExxonMobil (NYSE:XOM) have agreed to jointly explore three Faroese offshore licenses in the arctic Atlantic Margin.
Under the agreement, ExxonMobil Exploration & Production Faroe Islands Limited will acquire 50% interest in Licenses 009 and 011 and 49% interest in License 006, where Atlantic Petroleum is a minority owner with 1% interest. Statoil Faroes AS will retain 50% interest and operatorship in all three licences.
“This farm-down fits well with our strategy of portfolio optimization. I am very pleased with getting such a competent and experienced partner on board in this frontier area. Both ExxonMobil and Statoil have extensive experience in exploring in harsh environments,” says Tim Dodson, executive vice president for Exploration in Statoil.
“ExxonMobil looks forward to working together with Statoil, Atlantic Petroleum and the Faroes’ authorities on this exploration opportunity,” says Russ Bellis, exploration director, ExxonMobil International Limited. “We plan to apply our experience and expertise to explore this area through the application of industry-leading technologies and the highest standards of safety.”
The Ministry of Industry and Trade in the Faroes has approved the transfer of parts of Statoil’s stake to ExxonMobil. License 006 was awarded to Statoil in 2000 and License 009 and License 011 were awarded to Statoil in 2005.
This marks ExxonMobil’s first entry into the Faroes, while Statoil has been in the Faroes since 2000 and is operator of six offshore licenses. The partnership plans to drill an exploration well early in the second half of 2011. Statoil has earlier drilled two wells offshore Faroes.