Completion of acquisition of package of A/S Norske Shell’s

interests on the Norwegian Continental Shelf
OKEA AS, the oil and gas production and development company focused on the Norwegian Continental Shelf (“OKEA”), is pleased to announce that it has completed the acquisition of a package of A/S Norske Shell’s interests on the NCS, as announced in June 2018. The acquisition includes a 44.56% share of the Draugen field (PL093), a 12.0% share of the Gjøa field (PL153) and the office building “Råket” in Kristiansund.

OKEA will assume operatorship of the Draugen field effective from 30 November 2018. As part of this transaction, 153 employees will transfer from Shell to OKEA.

OKEA’s CEO Erik Haugane, said:
“We are very pleased with the work that we have accomplished with Shell since the signing of the agreement on 20 June 2018. Thanks to our comprehensive and dedicated work together, we are able to close this transaction on schedule. This is the beginning of a new chapter for OKEA, as Operator of one of the most prestigious fields on the NCS.”

For further information:

OKEA www.okea.no
Erik Haugane
Ola Borten Moe
+47 90721655
+47 91672125
 

Bangchak Corporation PCL

www.bangchak.co.th
Investor Relations

 

+66 2335 8663

 

Seacrest Capital Group www.seacrest.com
Alice Carroll

 

+44 20 3588 0065

 

Vigo Communications www.vigocomms.com
Patrick d’Ancona
Chris McMahon
 

+44 20 7390 0230

 


About OKEA
Established in Trondheim in 2015, OKEA is a Norwegian Continental Shelf focused oil company. OKEA contributes to value creation on the Norwegian Continental Shelf with cost effective development and operation systems in fields with proved reserves which have been traditionally overlooked.

About Seacrest Capital Group
Seacrest Capital Group is a leading independent energy investor specialising in offshore oil and gas investments, leveraging its proprietary assets, relationships and operational and technical capabilities to build a diversified, global portfolio of regionally focused oil and gas companies. Since 2010, Seacrest has invested in a number of upstream oil and gas companies in the United Kingdom, Norway, West Africa, Ireland, South East Asia and South America.

About Bangchak Corporation PCL
Bangchak Corporation Public Company Limited is a Thai energy company engaging in business alongside social and environmental stewardship. Its core business – petroleum refining – spans procurement of crude oil from domestic and overseas sources and refining it into various standard products. It also has businesses in renewables as well as petroleum exploration and production.


NEWS from OKEA

The Ministry of Petroleum and Energy and Ministry of Finance has approved the transaction from AS Norske Shell and OKEA concerning the transfer of the licenses associated with the Draugen field in the Norwegian Sea and the Gjøa field in the North Sea. The Ministry of Petroleum has also approved OKEA as new operator for the Draugen field. AS Norske Shell and OKEA AS aims to close the transaction on 30th November.

OKEA to acquire package of A/S Norske Shell’s interests on the Norwegian Continental Shelf for 4.5 billion NOK

OKEA AS, the oil and gas production and development company on the Norwegian Continental Shelf (“OKEA”), founded by management and Seacrest Capital Group, is pleased to announce it has entered into an agreement with A/S Norske Shell to acquire working interests in the Draugen (44.56% – Operator) and Gjøa (12% – Non-operator) fields for a total consideration of 4.52 billion NOK (~$566 million). 80% of decommissioning financial liabilities will remain with Shell up to an agreed cap.

Highlights:

  • OKEA estimates to acquire net daily production of c.22,000 barrels of oil equivalent from January 2018.
  • According to Woodmac, on completion OKEA would rank 19th on the NCS in terms of daily production in 2018.
  • OKEA’s net resources to increase from 11 to 53 million barrels oil equivalent.
  • Significantly enhances operating capability of OKEA with operations centre in Kristiansund.
  • Includes tax balances of c. 1,9 billion NOK.

 

The deal is subject to government approvals, with completion expected by the end of the year and the effective date for the transaction January 1st 2018.

OKEA was founded in 2015 and is headquartered in Trondheim. OKEA specializes in small and mid-sized developments on the NCS. Turning the Yme from decommissioning to redevelopment has proved the OKEA business model. The acquisition of the ready-to-relinquish Grevling discovery, now in planning for development, underlines the need for a specialized lean development and production company to fulfil the value and resource potential on the NCS. OKEA is the operator on Grevling and has recently assigned a working interest to Chrysaor.

The Draugen field was the first Norwegian Sea development and has been a flagship asset for A/S Norske Shell over the last 25 years. OKEA has the ambition to extend field life into the 2040s through continued focus on cost efficient operations, additional resources within the licence and near field exploration. The Gjøa field is a highly productive field with stable production, substantial subsurface upside and several tie-ins both committed and expected that will extend field life and value.

Kristiansund will be established as OKEA’s centre for operations on the NCS, not only for Draugen, but also for all future operated fields. Going forward, this will also represent further opportunities for the service industry already established in Kristiansund. During the transition period OKEA look forward to working closely with Shell and its staff to secure safe and prudent operations and a successful transfer. OKEA will assume staff from A/S Norske Shell as a part of this transaction both in Kristiansund and Stavanger, and obviously, the offshore crew on Draugen. In addition to the involved assets, these staff will play a key role in OKEA’s future development and operations on the NCS.

The transaction will be financed through a combination of underwritten bond loan and equity. Bangchak Corporation PCL, a Thai downstream oil and gas company, have entered into a strategic partnership with Seacrest Capital Group, and together they will finance the acquisition.

OKEA’s CEO Erik Haugane, said: “This high-quality acquisition is transformational for OKEA. The Draugen field is known for its excellent reservoir properties, operational excellence and outstanding HSSE performance. It will not only give us substantial production and cash flow, but additional operational capability and resource with which to take advantage of future opportunities and create value. We look forward to welcoming the highly skilled and experienced team from Shell and continuing operations in a safe, effective and prudent manner, as we establish the most effective operating company on the NCS.”

Seacrest Directors added:

Henrik Schroder, Chairman: “The combination of robust production assets, a strong pipeline of new development projects and leveraging OKEA’s focus on cost effective development of smaller fields, positions OKEA as a significant and unique player on the NCS.

Paul Murray, Director: “This transaction marks the beginning of a long-term strategic relationship with Bangchak, with whom we expect to continue to co-invest in the future. Globally, Seacrest continues to evaluate and pursue select opportunities to broaden our production and development portfolio, with this being a major milestone in that process.’’

For further information:

OKEA www.okea.no
Erik Haugane +47 90721655
Ola Borten Moe +47 91672125
Seacrest Capital Group www.seacrest.com
Alice Carroll +44 20 3588 0065

 

About OKEA

Established in Trondheim in 2015, OKEA is a Norwegian Continental Shelf focused oil company. OKEA contributes to value creation on the Norwegian Continental Shelf with cost effective development and operation systems in fields with proved reserves which have been traditionally overlooked.

About Seacrest Capital Group

Seacrest Capital Group is a leading independent energy investor specialising in offshore oil and gas investments, leveraging its proprietary assets, relationships and operational and technical capabilities to build a diversified, global portfolio of regionally focused oil and gas companies. Since 2010, Seacrest has invested in a number of upstream oil and gas companies in the United Kingdom, Norway, West Africa, Ireland, South East Asia and South America.

About Bangchak Corporation PCL

Bangchak Corporation Public Company Limited is a Thai energy company engaging in business alongside social and environmental stewardship. Its core business – petroleum refining – spans procurement of crude oil from domestic and overseas sources and refining it into various standard products. It also has businesses in renewables as well as petroleum exploration and production.


Picture taken after today’s signing. From left: Ola Borten Moe, Rich Denny (Managing Director A/S Norske Shell) and Erik Haugane


APPOINTMENT OF OKEA SVP OPERATIONS

We hereby announce that Tor Bjerkestrand has been appointed to OKEA SVP for Operations. On the final completion date for the deal Tor will move from Norske Shell and become an OKEA employee. Tor has played an instrumental role for the results achieved in Norway Operated over the last 3 years. We expect Tor to become  a cornerstone in the building of the new OKEA organization in Kristiansund.

Until completion date Tor will continue as Operations Manager for Norway Operated. He will only on an exception base be involved in the OKEA/ Shell transfer process, and then in accordance with the rules and processes we have put in place for the period upon completion of the deal. It is extremely important that Tor’s attention in the coming interim period can continue to be 100% on maintaining safe and prudent operations of the Norway Operated assets.

We will also like to emphasis that this appointment is dependent of Norske Shell and OKEA being able to bring the Draugen transfer from Shell to OKEA successfully to completion.

Odin Estensen/ Asset Manager Norway Operated                                           Erik Haugane/ CEO OKEA

 


OKEA joins the Operators Assosiation for Emergency Prepardness

As OKEA is soon to become the operator on one of NCS largest offshore facilities, OKEA joins the Operators Assosiation for Emergency Prepardness (OFFB). OFFB is a user-driven, non-profit emergency-response organisation owned by several operators on the Norwegian Continental Shelf.

“- OFFB was an organisation I took the initiative to start back in 2010. Pulling of resources and cooperation amongst oil companies is an important part of OKEAs philosophy and I am therefor very glad that OKEA now has grown into a position where it is natural for us to become a member of OFFB” say CEO Erik Haugane.