Norway's Equinor May Buy UK North Sea Oil Fields from China's CNOOC

Nora Buli
Monday, October 17, 2022

Norway's Equinor considering buying oilfields in the British North Sea from China's CNOOC, including a big stake in the huge Buzzard oilfield, two industry sources told Reuters on Monday. 

The deal is valued at between 20 billion and 30 billion Norwegian crowns ($1.9 billion-$2.8 billion), and might close as swiftly as the end of this year, Norwegian newspaper DN reported earlier on Monday, citing unnamed sources. 

The assets come with so-called tax losses, meaning the owner of the fields can offset past losses against future tax bills, one source said. 

"As a matter of principle, we never comment on rumours and speculation," an Equinor spokesperson told Reuters when asked about the DN report. CNOOC also declined to comment.

In March Reuters, citing four sources, reported CNOOC had hired Bank of America to start preparing a formal sale of its North Sea assets, potentially raising more than $3 billion. 

Reuters reported in April that the Chinese offshore oil and gas major was preparing to exit its operations in Britain, Canada and the United States because of concerns in Beijing the assets could become subject to Western sanctions. 

CNOOC acquired the North Sea assets as part of its $15 billion purchase of Canadian producer Nexen in 2013.

($1 = 10.6311 Norwegian crowns)

 (Reuters  - Reporting by Nora Buli, Ron Bousso, Shadia Nasralla; Additional reporting by Chen Aizhu in Singapore; Editing by Terje Solsvik and Jan Harvey)

Categories: Energy Mergers & Acquisitions North Sea Activity Europe UKCS Industry News

Related Stories

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com