Statoil Sells Assets, Signs Long-term Gas Pact With CentricaMonday, 21 November 2011
Norwegian oil and gas company Statoil Asa (STO) Monday announced plans to divest $1.625 billion worth of upstream assets on the Norwegian continental shelf to U.K. based energy firm Centrica PLC (CNA.LN) and said the two firms have also entered a long-term gas sales agreement.
AdvertisementStatoil will "farm down" its share in Kvitebjorn, Heimdal and Valemon fields to Centrica and exit five other projects in a transaction that will have very limited impact on Statoil personnel with no redundancies, the Norwegian company said. A "farm down" occurs when an oil company sells a share of a stake to another oil company, but retains interest in the project.
The effective date of the transaction, which is pending government approvals, is 1 Jan., 2012. Lambert Energy Advisory Ltd acted as sole advisors to Statoil.
Statoil also announced that the it has entered into a long-term gas sales agreement with Centrica for the delivery of 5 billion cubic meters per year from 2015 to 2025 to the UK market. The deal follows an existing agreement between Statoil and Centrica that expires in 2015.
Statoil shares Friday closed at NOK145.40. Centrica shares closed Friday at 289 pence.
News source: Dowjones Newswire
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