Norwegian operator Statoil has entered into an agreement with Lundin Petroleum to divest its 15% interest in the Edvard Grieg field for an increased shareholding in the company.
The transaction also includes divestment of a 9% interest in the Edvard Grieg pipeline and a 6% interest in the Utsira High Gas pipeline.
The company will make a payment of $68million in addition, to Lundin Petroleum.
Following the move Statoil will own 68.4million shares of the company.
In a statement, a spokesman said the transaction was initiated by Lundin Petroleum.
The two companies will continue to operate independently, and act as separate entities in all licenses on the Norwegian Continental Shelf.
Hans Jakob Hegge, chief financial officer of Statoil, said: “The increased shareholding in Lundin Petroleum will be an important long term industrial investment for Statoil. The transaction also underlines our long term interest and commitment to the future of the NCS”.
The transaction is subject to approval in Lundin Petroleum AB’s Extraordinary General Meeting 30 May 2016 and required authority approvals.
Statoil said the transaction has received unanimous support by the Lundin Petroleum board of directors, and the Lundin Petroleum family entities have confirmed that they will vote in favour of the transaction at the EGM.
Closing of the transaction is expected by end of July 2016.