EurOil: OKEA sells stake in Norwegian field to Lime

OKEA has agreed to divest its interest in the Yme field to fellow Norwegian oil and gas junior Lime Petroleum, a subsidiary of Singapore-based Rex International, for $15.6mn, the companies announced on September 24.

Through the deal OKEA will withdraw from the producing project, situated in the southeast of the Norwegian North Sea.

Under the terms of the agreement, OKEA will transfer its 15% interest in Yme to Lime, raising the latter’s overall stake to 25%. The transaction is expected to be completed before the end of the year, and will be backdated to January 1, 2024.

Lime will pay OKEA an additional post-tax sum of $9.2mn in 2027, structured as four payments of 25% each, contingent upon the completion of specific abandonment stages at the field. All decommissioning responsibilities will be assumed by Lime.

Spain’s Repsol operates the Yme field with a 55% interest, while another 20% position is held by Poland’s PGNiG.

Yme, situated at production licences 316 and 316B, is approximately 130 km northeast of the Ula field and lies in water depths of around 100 metres. It consists of two main structures, Gamma and Beta, which are located 12 km apart.

Discovered in 1987, Yme commenced production in 1996 but was shut down in 2001 after becoming unprofitable to operate. After a two-decade hiatus, the field was redeveloped and resumed production in 2021. Currently, Yme produces between 20,000 and 25,000 barrels of oil equivalent per day (boepd) following the completion of development wells in the second quarter of this year.

An Independent Qualified Persons Report (QPR) by AGR Energy Services in March placed Yme’s remaining proven and probable reserves at 39.47mn boe as of the end of 2023.

“After several years as a partner in the Yme licence, we have decided to exit a non-core area with a relatively small holding,” OKEA CEO Svein Liknes said in a statement. “This divestment enables OKEA to concentrate its financial and human resources in our core operations.”

“The Yme field has seen positive developments since we entered in 2022, and we are excited to increase our stake as part of our strategy to enhance our reserves and resources base,” Lime CEO Lars B. Hübert added. “We maintain a strong relationship with the operator, Repsol, and are collaborating closely to unlock additional value in Yme. This acquisition is expected to enhance Lime’s cash flow in the coming years.”

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