Equinor has entered into an agreement to acquire all of Spirit Energy’s production licenses in the Statfjord area which spreads across the Norwegian and UK Continental Shelves and are developed by three integrated production platforms (Statfjord A, B, C). All licenses are operated by Equinor.

Both parties agreed on a total consideration of USD 50 million, plus a contingent payment linked to commodity prices for the period between October 2021 to December 2022 (1).

The transaction has a commercial effective date from 1 January 2021, which is expected to result in a net payment to Equinor at closing. Spirit Energy’s daily production from the Statfjord area in the third quarter of 2021 was around 21,000 boe per day.

The transaction is part of a larger deal including Spirit Energy’s shareholders, Centrica Plc and Stadtwerke München, who are exiting their portfolio in Norway and selling their assets to Sval Energi. The sale to Sval Energi includes all assets with the exclusion of Statfjord which is instead sold directly to Equinor.

“Statfjord is one of the earliest oil fields on the Norwegian Continental Shelf. In 2019, we celebrated the 40-year anniversary since the start of production in 1979. Since production start in 1979, Statfjord has produced 5.1 billion barrels of oil equivalent and gross revenues of over NOK 1,675 billion. We still have high expectations for Statfjord and have recently launched a plan to extend the life of the field towards 2040,” says Camilla Salthe, senior vice president for late life assets in Equinor (Field Life eXtension, FLX).

FLX is a unit within Equinor that is responsible for safe and efficient operations of late life assets through new ways of working.

Reducing CO2 emissions will be a key priority for the field. Towards 2030, Equinor plans to realise energy efficiency measures and consolidate infrastructure to reduce emissions from Statfjord by 50%, contributing to Equinor’s climate goals for the NCS.

The closing of the transaction is subject to certain conditions, including customary government approval, and is expected to be completed by the first half of 2022.

(1) The contingent consideration is offered through a payment structure linked to UK NBP gas prices. The duration of the contingent sharing structure is from 5 October 2021 until 31 December 2022, and the after-tax cashflow from actual production exceeding a floor price is assumed split 50% to the seller and 50% to the buyer (with one payment in respect of 2021 and one payment in respect of 2022). The gas floor price from 5 October 2021 until and including 31 December 2021 is 145.8p/therm and from 1 January 2022 until and including 31 December 2022 is 96.9p/therm.

About Equinor

Equinor (OSE:EQNR, NYSE:EQNR), is an international energy company with a proud history. Formerly Statoil, we are 20,000 committed colleagues developing oil, gas, wind and solar energy in more than 30 countries worldwide. We’re the largest operator in Norway, among the world’s largest offshore operators, and a growing force in renewables. Driven by our Nordic urge to explore beyond the horizon, and our dedication to safety, equality and sustainability, we’re building a global business on our values and the energy needs of the future.

About Spirit Energy

Spirit Energy Limited is a leading independent oil and gas operator in Europe, with 2020 production of nearly 45 mmboe, and 2020 year-end 2P reserves of 246 mmboe.
Spirit Energy has operated and non-operated interests across the UK, Norway and the Netherlands, with 33 producing fields and nearly 150 exploration licenses.
Employing more than 800 people, Spirit is headquartered in the UK, with offices in Staines-upon-Thames and Aberdeen in the UK; Stavanger in Norway, and Hoofddorp in the Netherlands. The business also owns and operates the Barrow Gas Terminals in the UK.
The company is owned by Centrica plc (69%) and Stadtwerke München Group (31%)