TTA: TOTAL: Norway: Total Exchanges Assets with ExxonMobil in the North Sea
UK Regulatory Announcement
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has today announced an exchange of
interests with ExxonMobil in a range of producing and undeveloped North Sea
assets on the Norwegian Continental Shelf.
In exchange for its interests in the PL089 license (5.6%) and the Sygna
(2.52%), Statfjord Øst (2.8%) and Snorre (6.18%) fields, Total will receive
from ExxonMobil its 4.7% interest in the Oseberg field and its 4.33 % interest
in the Oseberg transportation system, together with its interests in the
PL029c license (100%) and the PL029b license (30%), which contain part of the
Dagny field. In addition, a minor cash compensation will also be paid by Total
Oseberg is one of the largest oil and gas fields in the Norwegian North Sea,
and includes a number of satellite fields currently under development. Dagny
reserves are estimated by the Norwegian Petroleum Directorate (NPD) to be 205
million barrels of oil equivalent (boe) and the Final Investment Decision
(FID) of the field development is expected before the end of 2012.
Following the assets exchange with ExxonMobil, Total’s interest in the Oseberg
field will increase from 10% to 14.7% and in the Dagny field from 6.54% to
This exchange is expected to close before the end of 2012. It remains subject
to the approval of the Norwegian authorities.
Commenting on the deal, Patrice de Vivies, Total’s Senior Vice President
Exploration&Production for Northern Europe, said: “It has been a
longstanding objective of Total to rationalise its portfolio in Norway and
strengthen its interests in assets considered to have upside potential. This
exchange with ExxonMobil allows us to focus our efforts on fewer and larger
Total in Norway
Since the late 1960s, the Total Group has played a major role in development
of a large number of Norwegian fields, notably Frigg and Heimdal. Norway was
the largest contributor to the Group’s equity production in 2011 with 287,000
boe per day. Before the asset exchange with ExxonMobil, Total held interests
in 90 production licenses in offshore Norway, 22 as operator.
In the first semester 2011 the developments of the Ekofisk South and Ekofisk
ll fields were launched, in which Total has a 39.9% interest. Each development
has a production capacity of 70,000 boe per day and production start-up is
expected in 2014 and 2015 respectively.
In November 2011, the Plan for Development and Operation (PDO) for the
operated Atla fast-track subsea field development was approved by the
Norwegian authorities. Atla is scheduled to come on stream in October 2012. In
January 2012, Total submitted the PDO for the Martin Linge field, a
stand-alone field development planned to come on stream in Q42016. The PDO
was approved by the Storting (Norwegian Parliament) in June 2012.
In 2011, Total made two promising discoveries as operator. The first is on
Norvarg in the Barents Sea, with reserves that could reach up to 300 million
boe; the second is on Alve North in the Norwegian Sea close to existing
infrastructure. Appraisal of both discoveries is being planned.
In the 2011 (APA) Licensing Round, announced on 17 January 2012, Total was
granted interests in an additional eight licences in the Norwegian North Sea,
including five as operator.
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Total is one of the largest integrated oil and gas companies in the world,
with activities in more than 130 countries. The Group is also a first rank
player in chemicals. Its 96,000 employees put their expertise to work in every
part of the industry – exploration and production of oil and natural gas,
refining and marketing, new energies, trading, and chemicals. Total is working
to help satisfy the global demand for energy, both today and tomorrow.
2, place Jean Millier
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Tel. : (33) 1 47 44 58 53
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Robert HAMMOND (U.S.)
Tel. : (1) 713-483-5070
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