The acquisition of Chevron’s 40% operated interest was initially announced in early October and came as Chevron was looking to shrink its presence in the North Sea.
Rosebank is one of the largest undeveloped oil and gas fields off Britain. Chevron has estimated that the field, situated some 130 km (80 miles) northwest of the Shetland Islands, could hold more than 300 million barrels, a Reuters report on Oct. 1 said.
Reuters also reported that the Rosebank project is currently estimated to cost over $6 billion, citing consultancy firm Wood Mackenzie.
The other partners in the field are Suncor Energy Inc. (NYSE: SU) with 40% and Siccar Point Energy with 20%. Siccar Point is seeking to sell at least half of its stake.
In a statement on Jan. 11, Equinor said the Rosebank acquisition “further strengthens Equinor’s U.K. upstream portfolio which includes the Mariner development, expected to start commercial production during the first half of 2019.”
Reuters contributed to this article.
The combined company is expected to generate annual synergies of $1.2 billion and will operate as Cenovus Energy Inc with headquarters in Alberta.
Laredo Petroleum remains “focused on executing similar, reasonably-priced bolt-on acquisitions around our core position in Howard County,” CEO Jason Pigott says.
Cracks have begun to show in the traditional performance metrics for executive compensation in the oil and gas industry, and there’s a growing push to reconsider them in the new environment.