Equinor acquires North Sea assets in $850m deal
Norwegian energy giant Equinor acquiring the British oil and gas business of Canada’s Suncor Energy for $850m.
Equinor said the deal includes a 29.9% stake in the Buzzard oilfield and an additional 40% stake in the Rosebank development.
Suncor’s UK-based employees who work with these assets will transfer to Equinor.
Philippe Mathieu, the company’s head of international exploration and production, said in a statement: “This transaction is in line with Equinor’s strategy of optimising our oil & gas portfolio and deepening in our core countries.
Suncor’s interim president and CEO Kris Smith said: “The decision to sell our UK Exploration & Production (E&P) business is a clear example of our commitment to optimise our asset portfolio.
“Having the right ‘fit and focus’ in our portfolio enables us to both ensure effective capital allocation consistent with our strategic objectives and to focus our organisation on delivering value in the rest of our portfolio, including our E&P business in East Coast Canada.”
Equinor said the transaction will add approximately 15,000 barrels of oil equivalent per day to its 2023 production.
It is already operator of the planned offshore Rosebank oil and gas project, some 130km northwest of the Shetland Islands and one of the largest developments in the ageing North Sea basin.
The deal doubles Equinor’s stake in the development to 80%, while London-listed Ithaca Energy holds the remaining 20%.
Equinor and its partner later this year are expected to make a final investment decision on Rosebank’s development, which the Norwegian group has said could involve a commitment of about £4.3 billion.
The Buzzard field
- Consists of four fixed platforms and three subsea manifolds.
- The field is currently producing at approximately 60,000 barrels of oil equivalents per day.
- Liquids are exported via the Forties Pipeline System to Hound Point Terminal where the crude is lifted and sold in the open market.
- The gas volumes are exported via the FUKA system.
- There is an electrification initiative to reduce the CO2 emissions on Buzzard.
- Buzzard is operated by CNOOC International.
The Rosebank development
- The Rosebank field, operated by Equinor is an oil and gas field located about 130km west of the Shetland Islands on the UK continental shelf.
- The Rosebank development has been optimized to reduce carbon emissions and the FPSO will be prepared for future electrification in line with the North Sea Transition Deal.
- The expected recoverable resources are approximately 300 million barrels of oil.
- Production from the field will be through subsea wells tied back to a redeployed FPSO for processing and offloading at the Rosebank field.
- The Rosebank partners: Equinor (40%), Suncor Energy (40%)* and Ithaca Energy (20%).
*To be acquired by Equinor, subject to relevant regulatory approvals.