Independent explorer Faroe Petroleum has bought Japan's JX Nippon Exploration and Production 13.9 per cent interest in the Blane Field in the UK North Sea for $5.25 million.
Blane is located on the Central Graben of the UK continental shelf, extending into the Norwegian sector.
JX is selling its 17.07 percent interest of U.K. Licence P111 Block 30/3a, comprising a part of the Blane oil field. The purchased 13.9 per cent interest consolidates Faroe’s existing Blane position to 44.5 per cent non-operated interest, the company said in a statement.
The deal will be completed by the year-end and is subject to UK regulatory approval.
Graham Stewart, chief executive of Faroe Petroleum, commented: “We are pleased to announce this Acquisition, which further increases our stake in this low cost, high quality and long life asset and at a fair value of $5.0 per boe. Raising our stake again in Blane, offers significant upside potential as we realise synergies through Blane’s use of our key Ula hub; increasing net production, reducing average operating costs, increasing profitability and providing access to further reserves potential from the field.
The field has been developed as a sub-sea tie-back to the Ula platform (Faroe 20 per cent), located on the Norwegian continental shelf and currently comprises two horizontal production wells with gas lift and one water injection well.
The Blane Field is operated by Repsol Norge AS and the other joint venture partners are Dana Petroleum (BVUK) and Repsol Sinopec Resources UK.