Equinor ASA has agreed to buy a 49% interest in Russian onshore petroleum assets from Rosneft for $550 million, the Norwegian oil company said on Dec. 11.
The payment is for a stake in limited liability company LLC KrasGeoNaC (KGN), which holds 12 conventional onshore exploration and production licenses in eastern Siberia, Equinor said.
One of the 12 licenses covers the North Danilovsky development, which started operations in July and is expected to produce 40,000 bbl/d of oil by 2024, with subsequent plans to increase this to 70,000 bbl/d, it added.
The deal also meant Equinor was no longer participating in offshore activities in the Sea of Okhotsk.
"We drilled two wells a few years ago in that area and the results from those wells led us to prioritize other areas," Equinor spokesman Erik Haaland said.
In addition to the producing field, Equinor's new licenses give it a share of acreage with exploration potential, he added.
They only concern conventional onshore projects and therefore do not fall under any Norwegian-backed European Union sanctions on oil exploration in Russia, which cover deepwater Arctic and shale developments, the spokesman said.
Equinor and Rosneft have maintained a strategic partnership in Russia since 2012, covering joint projects in several parts of the country.
Recommended Reading
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.