OKEA to acquire Repsol’s stake in Vette oil discovery and PL 972

Norway-based OKEA has agreed to acquire Repsol Norge’s 40% operated working interest in the in the Norwegian North Sea‘s PL 972, which includes the Vette oil discovery, for an undisclosed price.

The Vette oil discovery contained in Block 17/12 is located at a water depth of nearly 110 metres in the south-eastern part of the North Sea.

According to OKEA, the recoverable volumes from the oil discovery are 30-50 mmboe.

The other partners in PL 972 are ONE-Dyas Norge and M Vest Energy, which have stakes of 30% each.

The PL 972 license also includes the Mackerel and Brisling discoveries.

OKEA said that it will pursue a cost-efficient development of the Vette oil discovery with a concept that is appropriate for production from small discoveries.

OKEA to acquire Repsol’s 40% stake in Vette oil discovery and PL 972. Map courtesy of OKEA ASA .

The Norwegian oil company said that it has been working on the Grevling field development plan for quite some time.

OKEA said that the Vette oil discovery has a similar size as the Grevling fields, and the two assets could jointly make up a coordinated serial development for facilitating a satisfactory breakeven cost for the two offshore Norwegian fields.

Erik Haugane – OKEA CEO said: “We view Vette as the most likely candidate for a profitable small field standalone development on the NCS which can benefit a common infrastructure with similar size fields, like Grevling. Through this transaction, we continue to increase and diversify our portfolio with the key ambition to develop sub-100 mmboe fields on the NCS.”

The deal with Repsol Norge is subject to approval from the licence partners and also from the Norwegian Ministry of Petroleum and Energy.