With key approval out of the way, Longboat Energy, an emerging full-cycle North Sea E&P company established by the former management team of Faroe Petroleum, and Japan Petroleum Exploration Co., Ltd (JAPEX) are expected to complete all the steps for the creation of their Norwegian joint venture (JV) by mid-July 2023.
The two players reached an agreement last month, which would enable JAPEX to make a significant investment into Longboat’s Norwegian subsidiary, Longboat Energy Norge. The formation of the JV was subject to certain approvals.
In an update on Thursday, 22 June 2023, Longboat Energy confirmed that the Norwegian Ministry of Petroleum and Energy had given its approval to the formation of the JV, which was the key regulatory approval sought.
As a result, the completion of the transaction is now expected to occur in the first half of July 2023. Upon completion, the joint venture will be called Longboat JAPEX Norge in a bid to build “a leading Norwegian-focussed independent.”
This joint venture is expected to pursue a growth-led strategy to create value predominantly through the acquisition of development projects, growing 2P reserves, and reaching a significant production level within three to five years.
In addition, it will continue to target the drilling of one to three exploration and appraisal wells per year.