In a significant advancement for its operations, Longboat Energy, an emerging full-cycle exploration and production (E&P) company, has successfully completed the acquisition of interests in the Statfjord Øst Unit and Sygna Unit, collectively known as the “Statfjord Satellites.” This acquisition marks a pivotal step for Longboat Energy as it continues to expand its footprint in the oil and gas sector in Norway and Malaysia. The deal, valued at approximately US$15 million, was funded through a strategic partnership with Japan Petroleum Exploration Co., Ltd. (JAPEX), solidifying the foundation of Longboat Energy’s growth strategy in the region.

With the acquisition of a 4.80% unitized interest in the Statfjord Øst Unit and a 4.32% unitized interest in the Sygna Unit, Longboat Energy, through its Norwegian joint venture Longboat JAPEX Norge AS, has underscored its commitment to enhancing its production capabilities. The Statfjord Satellites, under the stewardship of the operator Equinor, have shown promising production figures, averaging net 254 barrels of oil equivalent per day (boepd) in 2023, with a current production rate of 370 boepd. The completion of drilling operations and the ongoing commissioning of new wells are expected to significantly increase production volumes in the first quarter of 2024, offering a bright outlook for Longboat Energy’s operational and financial performance.

The strategic collaboration with JAPEX, marked by a cash investment of US$20 million and the provision of a US$100 million Acquisition Financing Facility, has been a cornerstone of Longboat Energy’s strategy. This partnership not only facilitated the recent acquisition but also established a robust framework for future growth opportunities. Longboat JAPEX Norge AS, holding a 50.1% ownership by Longboat, is now poised to play a significant role in the Norwegian Continental Shelf, with interests in six discoveries and the producing Statfjord Øst and Sygna fields.

Longboat Energy’s journey, from its inception at the end of 2019 with a vision to create a full-cycle E&P company, through strategic mergers and acquisitions, and near-field exploration, has been marked by significant milestones. With a 66% technical success rate in its exploration endeavors in Norway, resulting in six hydrocarbon discoveries, Longboat has demonstrated its expertise and commitment to the sector. The company’s expansion into Malaysia through the award of a Production Sharing Contract for Block 2A offshore Sarawak further exemplifies its strategic approach to portfolio development, focusing on low-cost routes to monetization and low-carbon drilling and development opportunities.

Helge Hammer, Chief Executive of Longboat, expressed satisfaction with the completion of the acquisition, highlighting it as a crucial step towards achieving the company’s goal of building a material production interest portfolio. The emphasis on long-life assets, such as the Statfjord Satellites, and the pursuit of further asset additions reflect Longboat’s strategic vision for growth and sustainability in the competitive oil and gas industry.

As Longboat Energy embarks on this new chapter, the successful acquisition of the Statfjord Satellites not only enhances its production profile but also reinforces its position as a dynamic player in the global oil and gas sector. With a clear focus on building a sustainable and profitable E&P company, Longboat Energy is well on its way to achieving its long-term objectives, leveraging strategic partnerships, and capitalizing on opportunities in Norway and beyond.

The acquisition of the Statfjord Satellites by Longboat Energy signifies a strategic maneuver within the oil and gas industry, showcasing the importance of partnership and investment in driving growth and operational excellence. As Longboat Energy continues to navigate the complexities of the global energy market, its focus on strategic acquisitions, partnership synergies, and portfolio diversification will be key to its success and resilience in the face of evolving industry dynamics.

  Helge Hammer, JAPEX, Longboat Energy, Norway, Statfjord field