Pandion Energy AS (Pandion Energy) has entered into an agreement with Aker BP ASA (Aker BP) to acquire a 10 percent interest in the Valhall area, including licences PL006B, PL033 and PL033B.
Since production commencement in 1982, the Valhall field continues to be one of the largest oil fields in the southern Norwegian North Sea. Together with Hod field over one billion barrels of oil equivalent has been produced, more than three times the initial expected volume. Following commissioning of a new combined production and hotel platform in 2013, the field is currently producing ca. 37.5 kboepd* and is expected to continue to produce for several decades. Aker BP, the operator of Valhall field, has stated an ambition to produce at least an additional 500 million barrels of oil equivalent.
Jan Christian Ellefsen, Pandion Energy’s CEO, commented:
We are pleased and proud to be chosen by Aker BP to partner on such a high quality asset. By acquiring a 10 percent interest in Valhall, Pandion Energy gains exposure to a material production base with significant value-creation potential through near-term growth projects and substantial resource upside from field redevelopment, appraisal and exploration opportunities.
This is an important milestone in the growth of Pandion Energy, which was established in November last year. The company also holds a 20 percent interest in the Cara development project, one of the largest discoveries on the Norwegian Continental Shelf in 2016, where ENGIE E&P is the operator.
The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.
For more information on Valhall, please see: https://www.akerbp.com/en/our-assets/production/valhall/
*Average gross production rate for first 9 months in 2017