Towards the end of 2018, Equinor and Faroe Petroleum agreed on a number of transactions in the Norwegian Sea and the North Sea region of the NCS.
The campaign was meant to be a balanced asset swap when it comes to value with no cash consideration between the two companies, as well as a way for Equinor to upgrade its portfolio on the NCS.
In April 2019, DNO ASA via its wholly-owned subsidiary, Faroe Petroleum plc., finalised the completion of the asset swap agreement with Equinor ASA.
The swap involved the transfer/exchange of Faroe Petroleum’s interests in the non-producing Njord and Hyme redevelopment and Bauge development assets with interests in four Equinor-held producing assets on a cashless basis, including interests in the Alve, Marulk, Ringhorne East and Vilje fields.
With Faroe transferring its Njord, Hyme and Bauge interests, Equinor is strengthening its operating hold in the prolific Njord area, where reserves for the Njord and Hyme fields are estimated to be 175 million barrels of oil equivalent, while Bauge has a reserves estimate of 73 million barrels of oil equivalent. At the moment the platform and the storage vessel from the Njord field have been brought to shore for an extensive upgrade. Production is planned to restart in 2020 and produce until 2040.
DNO entered Norway in 2017 through the acquisition of Origo Exploration and its portfolio has since expanded following the acquisition of Faroe Petroleum plc in 2019.