Correction to Statoil Buys Total's Stakes in Norwegian Assets

By Dominic Chopping Features Dow Jones Newswires

Statoil ASA (STO) has agreed to buy stakes in two Norwegian oil assets from Total SA (TOT) for $1.45 billion, expanding its presence on the Norwegian Continetal Shelf with fields that offer low production costs and that will allow it to boost synergies from existing infrastructure in the area.

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The deal, announced Monday, will see Statoil's interest in the Martin Linge field rise to 70% from 19%. The North Sea field has estimated recoverable resources in excess of 300 million barrels of oil equivalent, with production expected to start in the first half of 2019 and run into the 2030's.

"By leveraging Statoil's operational experience and existing contracts, we can realize additional opportunities and synergies from these assets," said Arne Sigve Nylund, Statoil's executive vice president for Development & Production Norway.

As a result of the acquisition, Statoil will also receive remaining tax balances with a nominal post-tax value of more than $1 billion, it added.

The Garantiana discovery has a recoverable resource potential of between 50 million and 70 million barrels of oil equivalent, and development concepts are currently being evaluated.

Statoil has bought Total's 40% stake in Garantiana. Prior to the deal, Statoil had no interest in the discovery.

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Following the completion of the transaction, Statoil will become the operator of both assets.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping, @WSJNordics

Corrections & Amplifications

This article was corrected at 1029 GMT because the original incorrectly stated the day of the week in the second paragraph. The deal was announced Monday, not Thursday.

Statoil announced on Monday that it has agreed to buy stakes in two Norwegian oil assets from Total SA. "Statoil Buys Total's Stakes in Norwegian Assets For $1.45 Billion," published at 08:22 GMT incorrectly stated the day of the week in the second paragraph. The deal was announced Monday, not Thursday.

(END) Dow Jones Newswires

November 27, 2017 05:29 ET (10:29 GMT)