Norwegian energy giant Equinor has signed an agreement to acquire Chevron’s 40% operated interest in the Rosebank project, one of the largest undeveloped fields on the UK Continental Shelf (UKCS).
The Rosebank field was discovered in 2004 and is located about 130 km northwest of the Shetland Islands in water depths of approximately 1,110m. The other partners in the field are Suncor Energy (40%) and Siccar Point Energy (20%).
“We look forward to becoming the operator of the Rosebank project. We have a proven track record of high value field developments across the North Sea and will now be able to deploy this experience on a new project in the UK. Today’s agreement allows us to buy back into an asset in which we previously had a participating interest, demonstrating our strategy of creating value through oil price cycles. The acquisition of Rosebank complements our portfolio of oil, gas and wind assets in this country, in line with our strategy as a broad energy company. This new investment underlines Equinor’s commitment to be a reliable, secure energy partner for the UK,” says Al Cook, Equinor’s executive vice president for global strategy & business development and UK country manager.
Equinor changed its name from Statoil ASA earlier this year to reflect the diversification of its energy portfolio towards renewable sources.
Once concluded, the transaction will further strengthen Equinor’s portfolio projects in the UK, where it is among the largest suppliers of crude oil and natural gas. Its portfolio includes the Mariner development, attractive exploration opportunities and three producing offshore wind farms.
“With Rosebank, a standalone development in the underexplored West of Shetland region, we strengthen our upstream portfolio, which also includes Mariner, one of the largest investments on the UKCS in over a decade. As we have done with other projects in our portfolio, such as Johan Castberg and Bay du Nord, we intend to leverage our experience and competence to create further value in Rosebank, in alignment with the UK Government’s priority of maximising the economic recovery of the UKCS,” says Hedda Felin, Equinor’s senior vice president for UK & Ireland offshore.
The transaction is still subject to customary closing conditions.
The commercial terms of the agreement have not been disclosed.