Aker BP will acquire Equinorâs 77.8% interest and operatorship of the King Lear gas condensate discovery which straddles PL 146 and PL 333 in the North Sea. The deal, which was announced on 15 October 2018, is worth USD 250 million to Equinor. Equinor classifies King Lear as a low priority asset but Aker BP intends to develop the find as a satellite to its Ula field to increase capacity utilisation at the fieldâs facilities and to supply Ula with additional injection gas for its WAG programme. King Lear (including the Julius discovery) has estimated recoverable reserves of 99 MMboe (NPD, December 2017) and with Aker BPâs share of this plus the extra reserves it will produce from Ula as a result of the increased WAG, the company sees this deal resulting in a net increase of 100 MMboe to its portfolio. Â   King Lear was drilled by Statoil (now Equinor) in 2012. Exploration well 2/4-21 targeted the same prospect that was drilled by 2/4-14 in 1989. 2/4-14 discovered oil and gas in two thin sandstone stringers in the Lower Cretaceous Mandal Formation but the well ended with a major underground blowout and had to subsequently be re-entered twice in 1990 in order to be controlled and then permanently abandoned. The later King Lear well proved a 48m gas condensate column in the Upper Jurassic Farsund Formation and sidetrack 2/4-21 A (downdip) confirmed a 70m gas condensate column.  The Julius gas condensate discovery was made by Statoil in 2015 with 2/4-23 S. A 41 m gas condensate column was proven in the Upper Jurassic Ula Formation with no hydrocarbon contact. Estimated recoverable reserves for Julius (given at the time of discovery) were 15-75 MMboe and the NPD includes the Julius reserves in its overall volume for King Lear. 2/4-23 S also appraised King Lear, confirming the presence of a 20 m gas condensate column in the Upper Jurassic Farsund Formation which is in pressure communication with the original discovery.  PL 146 also contains the small Romeo and Espen oil discoveries. Statoilâs Romeo well 2/4-22 S (2014) found a 27 m gross oil column in the main Rotliegendes target. Additionally there was a 46 m gross oil column in the Middle Jurassic Bryne Formation and a 49 m gross oil column in the Bryne and Ula formations. Recoverable reserves were estimated at 4-13 MMboe. 2/4-11 was drilled on the Espen prospect in 1974 by Phillips. The Paleocene Ekofisk Formation produced a small flow of oil after acid stimulation. The NPD classifies both of these discoveries as âproduction is unlikelyâ.  Interest in both PL 146 and PL 333, after completion of the deal, will be held by Aker BP ASA (77.8% + operator) and Total E&P Norge AS (22.2%).
Aker BP is taking Equinor's entire stake of 77.8% in the King Lear g&cond. discovery in PL146 and 333, for US$250 MM.