Equinor and Petoro agree to swap assets in Norwegian Continental Shelf
(WO) — Equinor and Petoro have agreed to swap assets in the Haltenbanken area of the Norwegian continental shelf. Under this arrangement, Equinor will boost its ownership in the Heidrun field and Noatun discovery, while scaling back its stakes in the Tyrihans and Castberg fields, along with the Carmen and Beta discoveries.
Kjetil Hove, executive vice president for Exploration and Production Norway at Equinor, emphasized the strategic significance of this swap. "We have a strategy to sustain development and value creation on the Norwegian continental shelf, aiming for high production with lower emissions by 2035. Aligning ownership around major production hubs is crucial for long-term value creation," he stated.
Heidrun and Tyrihans are among the leading producing fields in the Halten area of the Norwegian Sea, with Heidrun standing out for its extended remaining lifespan.
"While this swap is value-neutral, aligning ownership will enhance value for all stakeholders in the Halten area over time. Balanced partnerships simplify commercial agreements, reduce operating costs, and expedite new developments, resulting in increased production at lower costs," Hove added.
Currently, Equinor holds a 13.0% equity interest in the Heidrun field, with Petoro at 57.8%. In contrast, Equinor's ownership of Tyrihans is 58.8%, with Petoro having no equity.
After the completion of the transaction, Equinor's ownership will be 34.4% in Heidrun and 36.3% in Tyrihans, while Petoro's ownership will be 36.4% in Heidrun and 22.5% in Tyrihans. Equinor's stake in Johan Castberg will be 46.3%.
This swap deal is contingent upon various regulatory approvals and endorsement by the Norwegian Parliament, with an effective date of January 1, 2025.
