document: OKEA confirmed on 15 November 2018 that all of the relevant approvals have been received relating to the companyâs acquisition of Shellâs 44.56% operated interest in Draugen (PL 093 and PL 176) and 12% interest in Gjoa (PL 153). The deal is expected to complete by 30 November 2018. During 2017 the assets contributed around 14% (25,000 boe/d) of Shellâs Norwegian production. The deal is agreed for an initial consideration of USD 556 million (NOK 4.52 billion) with Shell retaining an 80% liability for the total decommissioning costs up to an agreed limit of USD 78 million after tax (NOK 638 million). OKEA will be responsible for the remaining liability. Decommissioning costs for the two assets are estimated to be around USD 120 million after tax (NOK 1 billion). Once OKEA has completed the decommissioning Shell will pay an additional USD 46 million (NOK 375 million) to OKEA. The deal, which was reported by Shell on 20 June 2018, increases OKEAâs net reserves to 53 MMboe. The company is intending to extend the life of Draugen into the 2040âs.   The transaction is part of Shellâs global value driven divestment programme initiated following its acquisition of BG in February 2016 in a deal that valued the company at USD 70 billion. The company is aiming to divest USD 30 billion of assets as it seeks to reduce debt and simplify its portfolio. Shell retains a significant presence in Norway operating Ormen Lange and Knarr and partnering in Troll, Valemon and Kvitebjorn. It drilled two exploration wells on the NCS in 2018 (Tyttebaer and Coeus) and was offered operatorship of PL 958 as part of the 24th Licensing Round (see separate article).  Following completion of the deal interest in PL 093 and PL 176 will be divided between OKEA AS (44.56% + operator), Petoro AS (47.88%) and Neptune E&P Norge AS (7.56%). Interest in PL 153 will be split between Neptune Energy Norge AS (30% + operator), Petoro AS (30%), Wintershall Norge AS (20%), OKEA AS (12%) and DEA Norge AS (8%).
summary: OKEA confirmed on 15 November 2018 that all of the relevant approvals have been received relating to the companyâs acquisition of Shellâs 44.56% operated interest in Draugen (PL 093 and PL 176) and 12% interest in Gjoa (PL 153). The deal is expected to complete by 30 November 2018. 