Equinor to Acquire Shell’s Stake and Operatorship of Linnorm Discovery in Norwegian Sea

(IN BRIEF) Equinor has reached an agreement to purchase Shell’s equity stake and operatorship of the Linnorm discovery in the Norwegian Sea. This acquisition will grant Equinor a 30% interest in PL 255, which covers the Linnorm discovery, subject to Equinor taking over operatorship from A/S Norske Shell. The transaction is set to be finalized in the first quarter of 2024. Linnorm, discovered in 2005, is considered the largest undeveloped gas discovery on the Norwegian Continental Shelf (NCS) and is estimated to hold approximately 25-30 billion cubic meters of recoverable gas resources, surpassing the reserves of several producing fields in the region. Equinor plans to deepen its presence in the Halten area through this strategic move and explore potential tie-back options for Linnorm to Equinor-operated installations. The deal is contingent on approval from Norwegian authorities, and the partners in PL 255 include A/S Norske Shell (30%), Petoro (30%), Equinor Energy (20%), and TotalEnergies EP Norge AS (20%).

(PRESS RELEASE) STAVANGER, 15-Dec-2023 — /EuropaWire/ — Equinor has entered into an agreement to acquire Shell’s equity in and operatorship of the Linnorm discovery in the Norwegian Sea.

Under this agreement, Equinor will acquire a 30% interest in the PL 255 covering the Linnorm discovery, conditional upon taking over the operatorship from A/S Norske Shell. The deal is expected to close during the first quarter of 2024.

“Through this acquisition Equinor will deepen our position in the Halten area, in line with our strategy to optimise our portfolio on the NCS. We know this area well, where we already have producing hubs and still see attractive opportunities,” says Kjetil Hove, executive vice president for Exploration and production Norway in Equinor.

The Linnorm discovery in the Norwegian Sea was proven in 2005 and is the largest undeveloped gas discovery on the NCS. Linnorm is estimated to contain around 25-30 billion cubic meters (bcm)of recoverable gas resources. As a comparison, this is more gas than remaining reserves in each of the producing fields Aasta Hansteen, Martin Linge, and Gina Krog.

“A lot of good work has already been done to mature Linnorm. Together with our partners, we will build on this and develop the Linnorm gas resources for the European market,” Hove continues.

Equinor will continue to evaluate a tie-back for Linnorm to the Equinor- operated Kristin or Åsgard B installations.

“We are proud of our efforts to mature Linnorm and are pleased that we were able to find a solution which opens for it to be developed with an aligned partnership. This does not impact our ambition to maintain a material upstream position in Norway and contribute to the development and transition of the Norwegian Continental Shelf,” says Marianne Olsnes, managing director of Shell in Norway.

The deal is conditional on the approval of the Norwegian authorities.

The partners in PL 255 are: A/S Norske Shell 30% (operator until the transaction is completed), Petoro 30%, Equinor Energy 20 %, TotalEnergies EP Norge AS 20%.

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SOURCE: Equinor ASA