Norwegian Energy Company (UK) Ltd, a fully owned subsidiary of Norwegian Energy Company ASA, has entered into an agreement to sell 35 percent of UK license P2032 to Total E&P UK.
After this transaction, Noreco will keep a 15 per cent interest in the license. According to the agreement, Total will compensate Noreco by carrying Noreco’s share of seismic costs. If the licence partnership decides to drill an exploration well on the licence, Total will also cover drilling costs for Noreco’s retained interest in the licence. The agreement is effective from 1 December 2013.
The existing carry agreement between Noreco and license partner Trap Oil is still in force, leaving Noreco with a 6.25 per cent paying equity interest in the license.
The transaction is part of Noreco’s portfolio management, and is contingent upon government approval.
