Baku, Azerbaijan, May 14
By Leman Zeynalova – Trend:
The deal between Norway’s Equinor to acquire Royal Dutch Shell's Gulf of Mexico assets will increase its net production in US Gulf of Mexico by 15 percent in 2019, Trend reports citing Wood Mackenzie research and consulting group.
"This provides Equinor with a great opportunity to increase working interest in an asset it already knows well. The move increases Equinor's US Gulf of Mexico 2019 net forecasted production by almost 15 percent, to over 100,000 barrels of oil equivalent per day,” Michael Murphy, research analyst with Wood Mackenzie's Gulf of Mexico team, said.
He believes that the project will add near term cash flow to Equinor's regional portfolio, and with operator Anadarko set to be acquired by Occidental, it could also position the company to seek operatorship of the subsea tie-back field in the future.
Equinor has exercised its preferential rights over Delek Group to acquire an additional 22.45 percent interest in the Caesar-Tonga oil field from Shell, for a total consideration of US$965 million in cash.
This will increase Equinor’s interest from 23.55 percent to 46.00 percent. Anadarko remains the operator with a 33.75 percent interest, and Chevron retains its 20.25 percent interest.
Shell had previously agreed to sell the Caesar-Tonga assets to Delek Group, also for $965 million. That deal was conditional upon other interest-holders agreeing not to buy the stake.
The transaction will have an effective date of 1 January 2019. The closing of the transaction will be subject to customary consents and approvals.
Equinor has been present in the US Gulf of Mexico since 2005 with exploration prospects and interests in eight producing fields and two in development. Equinor is the owner and operator of the Titan facility.
Equinor is planning to drill the Monument Paleogene prospect in the US Gulf of Mexico in 2019.
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