Norway oil firm buys out Wintershall Dea’s stake in Brage oil field

Wintershall Dea is divesting its ownership of the Brage field and two other North Sea offshore assets and transferring the operatorship to Norwegian mid-late life specialist operator OKEA, the company said on Monday.

The Oslo-listed OKEA will buy Wintershall Dea’s 35.2 percent share in Brage and 6.46 percent share in Ivar Aasen, as well as 6 percent of the Nova development for US $117.5 million in cash plus a contingent consideration based on output as well as on oil prices exceeding $80 per barrel from 2022 to 2024, Wintershall Dea said in a statement.

The acquisition will increases OKEA’s output by between 5,000 and 6,000 barrels of oil equivalent per day (boepd) this year, rising to at least 7,000 boed in 2023 and 2024 and with further potential for increases, the Norwegian company said.

Wintershall Dea meanwhile will focus on its strength as one of the largest subsea operators on the shelf in Norway.

“Norway is and remains an important core region for Wintershall Dea's production in our global portfolio,” Dawn Summers, Chief Operating Officer at Wintershall Dea, said in a statement.

“With the sale of our interests in Brage and Ivar Aasen, we are further strengthening our focus in Norway on gas production. Here we already have a strong position in the country, and our major projects Dvalin and Njord, that are planned to come on stream by the end of 2022, will add further gas volumes that secure energy supply in Europe,” Summers added.

In Norway, that would translate to Wintershall Dea putting an even stronger focus on exploration, development, and production in core areas, to continuously develop a low-carbon asset portfolio and position the company within carbon management and hydrogen, the company said.

OKEA said it expects to make an annual cost savings of between $4 million and $7 million from the acquisition.