OKEA Gets Approval to Acquire Shell's Draugen, Gjoa Fields

Norway's 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 Trondheim-based oil company informed in a press release that 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 November 30, it said.

Norwegian producer backed by private equity firm Seacrest Capital OKEA has agreed to acquire the working interests of AS Norske Shell in Draugen (44.56 percent) and Gjoa (12 percent) fields offshore Norway for $556 million in early June this year.

Shell’s share of the assets’ production amounted to 25,000 boe/d in 2017, representing about 14 percent of Shell’s Norwegian production in 2017.

The deal, “consistent with our strategy to high-grade and simplify our portfolio,” said Andy Brown, Shell’s upstream director, is part of the company’s three-year, $30-billion divestment program.