Sept. 21 (Bloomberg) -- Faroe Petroleum Plc, an oil company focused on the U.K. and Norway, agreed to invest in a field off the Shetland Islands as it seeks to raise production to boost funds for exploration.
Faroe will pay Marubeni Oil & Gas Ltd. $32 million for a 10 percent stake in the East Foinaven field and a 0.5 percent share in the West Shetland Pipeline System, it said today in a statement. The pipe network transports natural gas from the BP Plc-operated field and two others to the Shetland Islands.
“East Foinaven is a good-quality producing field,” Graham Stewart, chief executive officer of Aberdeen, Scotland-based Faroe, said in the statement. The purchase “is in line with our strategy to grow our production portfolio to continue the funding of our exploration program.”
Stewart said this week that Faroe is seeking to expand its search for oil and gas by acquiring stakes in mature projects. The company has already invested in the Barents Sea’s Darwin prospect, operated by Spain’s Repsol SA, where drilling is planned to begin at the end of this year.
The East Foinaven deposit, in blocks 204/24a and 25b, was discovered in 1995 and developed as a subsea tieback to the nearby Foinaven field. It produced its first oil in 2001, and gross output this year is forecast to average about 3,500 barrels of oil equivalent a day, Faroe said in the statement.
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