Faroe Petroleum said today it had completed what was described as its “transformational” Norwegian deal.
The Aberdeen-based firm has concluded has asset swap with Petoro, which it said would see it avoid £250million of capital expenditure on its Norwegian Maria development.
It will also give it cash flow to fund exploration, including ongoing drilling on the Butch and T-Rex wells and future plans wells.
The deal was for Faroe to exchange a 30% stake in the Maria discovery for other oil and gas production assets off Norway.
The deal includes production from those assets of about 7,600 barrels of oil equivalent per day backdated to January, while Petoro, a government corporation that manages the Norwegian government’s own oil and gas, would retain decommissioning liabilities.
Separately, the firm said drilling on its Fulla prospect had suggested 33million barrels of oil recoverable on Freya/Fulla area, with most in Freya.
Seismic work was now being planned to assess the best locations for production wells, the firm said.