Statoil enters UK license for Alfa Sentral project

STAVANGER, Norway -- Statoil has acquired First Oil’s 24% equity share in the UK license for Alfa Sentral field for $15 million.

Alfa Sentral, a gas and condensate field, is planned to be developed as a tie-back to the existing infrastructure for Sleipner on the Norwegian Continental Shelf (NCS), which Statoil operates. Alfa Sentral will therefore increase the utilization of the Sleipner facilities.

“Statoil has set ambitious goals for future activity, production and value creation. This transaction demonstrates the potential on both the UK and Norwegian side of the Continental Shelf. The acquisition of this Alfa Sentral license increases the resource base and strengthens our efforts to further develop the Sleipner area towards 2030," said Mette Halvorsen Ottøy, senior V.P. for the operations south cluster in Development & Production Norway (DPN).

Through this transaction, Statoil has taken a 24% interest in UK Continental Shelf (UKCS) license P312, which, with license PL046 on the NCS, comprises Alfa Sentral field. Statoil is the operator in PL046 with a 62% holding.

As a result, Statoil has increased its equity holding in a high priority project in a core area, deepening its presence on both the NCS and UKCS. The transaction is expected to close by the end of 2015.

The concept selection for the Alfa Sentral project was passed in September 2015. Negotiations to unitize the field will commence shortly. A final investment decision is planned for late 2016 with production start-up in 2020.