Lime Petroleum, a Norwegian subsidiary of Singapore’s Rex International, is increasing its stake in the North Sea oil field operated by Repsol Norge. This move follows a deal with OKEA, which is divesting non-core assets to focus on its primary operations.
The Yme field resumed production in October 2021 after a 20-year hiatus. The Norwegian Petroleum Directorate granted Repsol permission to restart operations based on a revised development plan.
Previously, Lime acquired a 10% stake in the Yme field for $68 million. Now, it is purchasing OKEA’s 15% interest for a post-tax consideration of $15.65 million. This acquisition raises Lime’s total stake to 25%. While Lime will cover all decommissioning costs, it will also pay OKEA $9.2 million in 2027 in four installments. This deal, effective January 1, 2024, should finalize by year-end, with funding sourced from cash reserves.
CEO Svein J. Liknes of OKEA expressed satisfaction with the agreement. He noted that it allows OKEA to concentrate on its core areas. Therefore, this collaboration benefits both Lime Petroleum and OKEA, supporting their growth strategies.
Located in production licenses PL 316 and PL 316B, the Yme field sits in the southeastern part of the Norwegian sector of the North Sea. Although initially discovered in 1987, the field’s production began in 1996.
Source: Offshore Energy
