An agreement between Equinor and Sval Energi has been reached for the sale of Equinor’s non-operated interest in the Greater Ekofisk Area and a minority share in Martin Linge (19%).

A total of 7.604% of the Ekofisk area licenses PL018, PL018B, and PL275 are part of the agreement (including Ekofisk, Eldfisk, and Embla fields, as well as 6.63922 % of Tor Unit).

By entering this agreement, Equinor will not have any ownership interests in the Greater Ekofisk Area, but will retain a 51% ownership share in Martin Linge and remain the operator of the field. 

As part of the deal, Equinor will also sell its 18.5% interest in Norpipe Oil AS, which is part of the logistics system that ships oil from the Greater Ekofisk Area to land.

A cash consideration of $1 billion is also part of the agreement, in addition to a contingent payment structure for 2022 and 2023 linked to the realized prices for both assets.

The transaction is expected to close during the second half of 2022, subject to customary government approvals and licenses.

Rune Nedregaard, Senior vice president Exploration Production South Norway says: “Ekofisk has played an important role in Norway and Equinor’s oil and gas journey as the first producing field on the Norwegian Continental Shelf. The Greater Ekofisk Area is an area where Equinor has limited participation, and we have therefore decided to sell our position in the area during a period of high prices and to redirect capital to other core areas for the business.”