Kuwait Foreign Petroleum Exploration Company (KUFPEC) said its Norwegian unit has signed an agreement to buy a 15 per cent stake in offshore gas field Gina Krog for US$317 million from Total.
The transaction, effective Jan. 1 2017, is subject to all requisite Norwegian Government approvals. Upon completion, KUFPEC ’s Norwegian unit’s working interest in the Gina Krog field will be 30 per cent.
At closing, KUFPEC will add approximately 34 MMboe in net reserves and approximately 9,000 boe/d of production from Gina Krog, which came on-stream in June 2017 and is operated by Statoil, KUFPEC said in a statement. The addition of the new production will take KUFPEC’s production in Norway close to 25,000 boe/d.
“KUFPEC continues to execute its strategy to grow in profitable projects in Norway, and this transaction builds on our 2016 acquisition of Greater Sleipner Area assets from TOTAL, which included a 15 per cent interest in Gina Krog,” KUFPEC CEO Shaikh Nawaf Saud Nasir Al-Sabah said.
KUFPEC was established by its parent company Kuwait Petroleum Corporation in 1981 to engage in exploration, development and production of crude oil and natural gas outside the State of Kuwait. It is currently active in 14 countries with 54 assets in the international upstream sector. KUFPEC is headquartered in Kuwait City, Kuwait and has additional offices in Australia, Canada, China, Egypt, Indonesia, Malaysia, The Netherlands, Norway and Pakistan.
Scotiabank acted as exclusive financial advisor to KUFPEC in this transaction and Advokatfirmaet Selmer acted as Norway legal advisor.
Total in a later statement said its recent acquisition of Maersk Oil & Gas has strengthened its position in the North Sea, where it is optimising its capital.
“In the framework of our portfolio management and optimisation of the allocation of capital, we have decided to fully divest our interest in the Gina Krog project and focus on other opportunities in Norway, which remains a key country for Total,” said Arnaud Breuillac, president, Exploration and Production at Total.