Spirit Energy sells its Norway business and Statfjord UK
Spirit Energy has entered into agreements to divest its Norwegian business including the Statfjord UK field. The headline consideration is $1,076 million (approximately £800million), plus a contingent payment linked to commodity prices.
The transactions comprise the following:
- Sval Energi will acquire the interests held by Spirit Energy Norway AS, excluding the Statfjord Norway field, and
- Equinor will acquire Spirit Energy Norway AS’s interest in the Statfjord Norway field and Spirit Energy’s interest in the Statfjord UK field.
Chris Cox, Chief Executive Officer of Spirit Energy, said: “The sales agreements are in accordance with the strategy of Spirit Energy’s owners to reduce the carbon intensity of its portfolio.
“Over the last 15 years, we have created an attractive cash-generating business in Norway with producing assets, future developments and exciting exploration opportunities. Sval Energi is acquiring a successful and solid business.”
Spirit Energy will continue as a business in the UK and in the Netherlands.
Mr Cox added: “In the UK and the Netherlands, our focus is on realising value from our remaining reserves, safely and efficiently decommissioning our facilities and wells with minimum environmental impact, and pursuing energy transition opportunities in our assets as part of our commitment to support the UK’s journey to net zero.
“After the sale of Spirit Norway, Spirit Energy is now predominantly a gas business which will continue to provide much-needed energy to households and businesses, with a low carbon footprint.”
The Spirit Energy Norway workforce will be transferred to Sval Energi AS, as the sale constitutes a transfer of undertaking according to the Norwegian Working Environment Act chapter 16.
The commercial effective date of the transactions is 1 January 2021. The transactions are subject to approval from the relevant authorities.
Facts about Spirit Energy
- An oil and gas exploration & production company with two shareholding entities: Centrica (69%), and Stadtwerke München GmbH SWM (31%).
- Operated and non-operated interests across the UK, Norway, and the Netherlands, with more than 30 producing fields and approx. 128 exploration licences (2020).
- 2020-production of 44.9 million barrels of oil equivalent (mmboe).
- Proven and probable (2P) reserves of 246 mmboe (2020).
- Total workforce of approx. 850.
Facts about Spirit Energy Norway AS
- 2020-production of 55,000 barrels of oil equivalent per day (boe/d).
- 11 producing fields: Oda, Vale, Statfjord, Statfjord Øst, Statfjord Nord, Sygna, Kvitebjørn, Ivar Aasen, Vega, Trym and Maria. Operator of Oda and Vale.
- Several development opportunities, including Fogelberg and Ivory (both operated), Nova, Hanz (both in flight), Halten Øst, Iris Hades, Bergknapp and Lille Prinsen.
- Office in Stavanger, total workforce of approx. 130.
Facts about the Statfjord area
The Statfjord area covers the following licences: Statfjord Unit (or Statfjord main field), Statfjord Øst, Statfjord Nord and Sygna. The Statfjord Unit development covers the big Statfjord A, B and C concrete gravity base platforms, whereas the other fields are subsea developments tied back to the main field platforms. Equinor is operator for all licences.
Spirit Energy Norway AS’s ownership in the Statfjord area is:
- 19.76464% in the Statfjord Unit (Statfjord A, B and C) (PL037)
- 23.125% in Statfjord Nord (PL037)
- 12.7187% in Sygna Unit (PL037 and PL 089)
- 11.5625% in Statfjord Øst Unit (PL037 and PL089)
- 34.29595% in PL1050 (exploration)
Spirit Energy Resources Limited ownership in the Statfjord area is:
- 14.53131% in the Statfjord Unit (Statfjord A, B and C – comprised of interests in UKCS Licences P.104 and P.293)
- 34.29595% in Barnacle (UKCS Licence P.2460, Blocks 211/29f and 211/30c)
- 48.78049% in the Northern Leg Gas Pipeline System
Jill Glennie, Head of Communications in Spirit Energy
Mobile (+44) 7557 614018
Tom Gederø, Communications Manager in Spirit Energy (Norway)
Mobile (+47) 922 47 082
Photo: Øyvind Hagen, Equinor