Noreco to Sell Its 20 pct Share of Brynhild Oil Discovery to Lundin Petroleum

Norwegian Energy Company (Noreco) has entered into an agreement to sell its 20 percent share of license PL148 in the North Sea to Lundin Petroleum.

The license contains the oil discovery Brynhild (previously called Nemo), where a Plan for Development and Operations (PDO) was recently approved by Norwegian authorities.

Noreco will receive a consideration of USD 2.4 million upon completion of the transaction, in addition to reimbursement of certain costs incurred in the license during 2011.

The Brynhild field is located approximately 210 km from the Norwegian mainland, near the Norway-United Kingdom border. The development of Brynhild will be a three well subsea tie-back to the Pierce FPSO located in the United Kingdom, 38 km south of the field.

According to the estimated gross reserves are approximately 20 million barrels of oil equivalents (MMboe) with net peak production of approximately 12,000 barrels of oil equivalents per day (boepd). The hydrocarbons will be processed at the Pierce FPSO before being offloaded for further transportation.

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Offshore Nieuws Staff , November, 18.  2011; Image: Statoil