BAKU, Azerbaijan, May 8. Equinor has finalized an agreement with Standard Lithium Ltd to purchase a 45-percent stake in two lithium project companies situated in Southwest Arkansas and East Texas, Trend reports.
According to the terms, Equinor will reimburse Standard Lithium for past expenses, amounting to $30 million, against the acquired interest and will cover Standard Lithium's capital expenditure of $33 million to advance the assets toward a potential final investment decision.
Equinor will also offer milestone payments totaling up to $70 million to Standard Lithium if a final investment decision is reached.
The ownership structure will see Standard Lithium and Equinor holding 55 percent and 45 percent shares, respectively, in the two project companies, with Standard Lithium retaining operational control. Equinor will lend support to the operator by leveraging its core competencies in subsurface and project execution capabilities.
"Sustainably produced lithium can be an enabler in the energy transition, and we believe it can become an attractive business. This investment is an option with limited upfront financial commitment. We can utilise core technologies from oil and gas in a complementary partnership to mature these projects towards a possible final investment decision," says Morten Halleraker, senior vice president for New Business and Investments in Technology, Digital and Innovation at Equinor.