Statoil completes $1.45B takeover of Total’s Martin Linge, Garantiana assets

Norway’s Statoil (soon Equinor) has completed the takeover of Total’s stakes in the Martin Linge field and Garantiana discovery offshore Norway.

Statoil now has a 70% interest in Martin Linge and 40% in Garantiana.

In a statement on Monday, Statoil said that 121 employees from Total have been transferred over to Statoil in accordance with the previously announced agreement.

The original agreement was announced in November 2017, under which Statoil was to acquire Total’s equity stakes in the Martin Linge field (51%) and the Garantiana discovery (40%).

Under the deal, Statoil was to take over both operatorships and pay Total a consideration of $1.45 billion.

Production start-up is expected in the first half 2019. The Martin Linge oil and gas field is located in the North Sea approximately 180 kilometers west of Bergen, Norway. The project partners – before the transaction with Statoil – were Total E&P Norge (51% operator), Petoro (30%) and Statoil (19%).

Martin Linge

The Martin Linge field is an oil and gas field under development west of the Oseberg field in the North Sea, with estimated recoverable resources in excess of 300 million barrels oil equivalent. The expected production lifetime extends into the 2030s. Martin Linge is being developed with a manned wellhead platform.

Operations at Martin Linge will be controlled remotely from an onshore digital operations center, enabling reduced operational expenditures. Electrification is made possible through a 160 km cable from shore, the longest AC power link in the world. This will reduce CO2 emissions by 200,000 tonnes per year. Following completion of the transaction, Statoil’s stake has increased from 19% to a 70% interest in the field.

As result of the transaction, Statoil will also receive remaining tax balances with a nominal post-tax value of more than $1 billion.

Garantiana

As for the Garantiana, it is an oil discovery north of the Visund field in the North Sea with a recoverable resource potential between 50 to 70 million barrels oil equivalent. Development concepts are currently being evaluated.