Det norske's Sverdrup Oilfield Stake Undervalued by $500 mln

A proposal to divide the giant Johan Sverdrup oilfield in the Norwegian sector of the North Sea undervalues Det norske's stake in the $29 billion project by around $500 million, the firm's top shareholder said on Thursday.

Det norske's part of the field, one of three licences that make up Sverdrup, has more valuable oil with higher concentration and a greater recovery potential, and lower production costs, said Kjell Inge Roekke, the chairman of Aker ASA, which owns 49.99 pct of Det norske.

"There is a substantial difference between what we consider a fair distribution and the proposal to be evaluated by the Norwegian Petroleum Directorate," Roekke said in a letter to shareholders. "The difference equates to about 35 percent of Det norske's current stock exchange value."

Det norske has a market capitalisation of $1.45 billion.

Most shareholders, including operator Statoil (STO) agreed in February on how to divide up the project but Det norske disputed the agreement, asking for a government review.

Sverdrup, Europe's costliest offshore energy project, contains up to 3 billion barrels of oil equivalent (boe) and could operate for 50 years, giving a boost to Norway's declining oil industry.

It is forecast to start production by the end of 2019.

The project is expected to break even at under $40 per barrel, giving shareholders a huge margin even after Brent crude fell to around $62 from over $100 last June.

Once the project is running, operating costs are seen under $5 per barrel.

Until the government decision, Statoil will hold 40.0267 percent, Lundin 22.12 percent, state holding firm Petoro 17.84 percent, Det norske 11.8933 and Denmark's Maersk 8.12 percent.

Reporting by Balazs Koranyi