Norway’s oil and gas player Aker BP has made arrangements with JAPEX Norge, a Norwegian subsidiary of Japan Petroleum Exploration (JAPEX), to trade partial interests in two fields for the Japanese player’s Northern North Sea assets.
After Longboat decided to exit Norway and concentrate on its hydrocarbon exploration and production business in Southeast Asia, where it saw significantly more potential for a small company, it sold its 50.1% interest in Longboat JAPEX Norge (LJN), its Norwegian joint venture (JV) with JAPEX, to its JV partner for $2.5 million in cash.
The Japanese player’s Norwegian arm has now struck a deal with Aker BP, which will see the latter swap a 10% interest in its operated Alve Nord development and a 3.5% stake in the Verdande development in exchange for JAPEX’s Northern North Sea portfolio and a cash consideration of $14 million.
Equinor, as the operator of the Verdande subsea development , got the green light at the end of 2022 to replenish oil for the FPSO Norne through this project, which comprises the Cape Vulture and Alve North-East discoveries, proven in 2017 and 2020, respectively. The field is slated to come online in the fourth quarter of 2025.
The operator and its partners believe that the extended lifespan at Norne has the potential to enable increased recovery, corresponding to 11 million barrels of oil equivalent until 2035, if production from Verdande becomes possible.
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This portfolio addition comprises a 15% interest in the Kjøttkake discovery (PL1182S), a 10% stake in the Kveikje discovery (PL293B/PL293CS), and a 20% interest in PL1212S. The effective date of the transaction is January 1, 2025, with completion subject to approval by Norwegian authorities.
“By increasing its stake in Kjøttkake to 45 percent and entering Kveikje with 10 percent, Aker BP strengthens its position in a high-potential cluster of discoveries,” highlighted the Norwegian oil and gas player.
JAPEX’s move to divest its Northern North Sea portfolio comes shortly after the firm sold its UK business to Ithaca Energy.
Aker BP is currently working on several North Sea projects, including an oil and gas development, which now sports a new jacket following recent installation off the coast of Norway.