Statoil eyes drilling as it takes over operatorship of UK license P.2170
LONDON -- Statoil has signed a Sales and Purchase Agreement with Jersey Oil and Gas and CIECO Exploration and Production (UK) Limited to acquire 70% ownership and operatorship of the P.2170 license on the UK Continental Shelf (UKCS).
P.2170 lies in the Buchan Graben in the Outer Moray Firth region, an area containing the Buchan, Buzzard and Ettrick oil discoveries.
“This transaction underpins Statoil’s exploration strategy of exploiting prolific basins and deepening in core areas,” said Jez Averty, senior V.P. for exploration, Norway and the UK, Statoil.
Statoil will acquire a 70% working interest and operatorship in the license for a total cash consideration of $2 million. Following the transaction, Jersey Oil and Gas will hold an 18% interest in the license with CIECO Exploration and Production (UK) Limited holding the remaining 12%.
The agreement is subject to approval by the UK’s Oil and Gas Authority.
“The opportunity looks promising, and we are looking forward to further evaluating the data to assess the feasibility of testing the prospect. It adds additional acreage and volume potential to our UK portfolio, and we could potentially drill this prospect next year,” Jenny Morris, Statoil’s head of UK exploration, said.
Statoil UK is the operator of Mariner field, currently under development, and has the ambition to be an active explorer on the UKCS with the belief that considerable hydrocarbon resources remain undiscovered.
