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 problem for the crude oil industry is that it can't really predict the demand side of the equation with any accuracy, given the uncertain nature of the recovery from the COVIE-19 pandemic.
Business Roundtable previously had no position on the subject.
For years, the midstream sector has managed to stay strong in weak oil and gas markets, but the unforeseen impacts of COVID-19 and the OPEC+ oil price shock have had a deep impact.