Statoil ASA (NYSE:STO) has signed an agreement with OMV to hand over the stakes in seven exploration licenses to OMV. Five of these licenses are located in the Faroe Islands and two of them are in Norway. Statoil and OMV had announced in August that they would cooperate in exploration activities. This agreement resulted from the discussions between the two companies.
Statoil ASA’s active portfolio management
“This is part of Statoil ASA (NYSE:STO)’s active portfolio management. We welcome OMV as a partner in these licenses and look forward to working with them on exploring the oil and gas potential offshore the Faroe Islands. Statoil remains the largest license holder in the Faroe Islands and we are preparing for drilling two wells in 2014,” stated Runi M. Hansen, country manager for the Faroe Islands and Greenland in Statoil ASA (NYSE:STO).
The licenses which have been farmed out by Statoil in the Faroe Islands include licenses L006 (Statoil: 35 percent), L008 (Statoil: 40 percent), L009 (Statoil: 35 percent), L011 (Statoil: 35 percent) and L016 (Statoil: 30 percent). OMV already holds between 10 and 30 percent in all five licenses.
Statoil is a non-operating stakeholder
In Norway, the licenses farmed down by Statoil include 15 percent interest in PL359 and PL410. PL359 includes the exciting discovery of Luno II. Statoil ASA (NYSE:STO) is a non-operating stakeholder in both these fields where Lundin is the operator.
“The transaction is part of our high grading of the exploration portfolio on the NCS. Last year we farmed into PL338 containing the Edvard Grieg discovery with 15% based on the same overall approach. We will now have a balanced equity position in this area,” said Gro Haatvedt, senior vice president exploration Norway.
Both parties have agreed not to disclose the commercial terms of the agreement. The transactions are subject to approval from authorities.