Pandion Energy has agreed to divest its 20% stake in the Duva field through two transactions, one with PGNiG Upstream Norway and one with Solveig Gas Norway, each acquiring a 10% share in PL 636 and PL 636B.
The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved earlier this year.
With recoverable reserves of 88 million barrels of oil equivalent, the field is expected to produce around 30 thousand barrels of oil equivalent per day at its peak.
The Duva field will be developed as a subsea tie-back to the nearby Gjøa platform, with first production expected in late 2020/early 2021.
Jan Christian Ellefsen, CEO of Pandion Energy, said: “Duva was the first discovery in our portfolio after forming Pandion Energy almost three years ago. We are pleased with the significant value created to date, having participated since the field was discovered through to development. Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallize some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities. We remain deeply committed to the Norwegian Continental Shelf and look forward to continuing to create value in our remaining portfolio and investing in new attractive opportunities on the shelf.”
The transactions are subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.