Solveig Gas Norway AS (Solveig) has today announced that it has entered into an agreement to acquire the entire share capital of Capricorn Norge AS from Capricorn Energy Limited, a subsidiary of Cairn Energy PLC (LSE:CNE). Capricorn Norge owns 10% in the Nova field and plans to drill two exploration wells in 2020. In addition, the remaining portfolio of exploration licenses is expected to trigger further activity. The company employs 50 staff and consultants and is qualified as an operator.
Solveig is one of the largest owners in Gassled, the Norwegian infrastructure system which processes and transports Norwegian gas to the UK and Continental Europe. In addition to its existing 15.56% stake in Gassled, Solveig has recently acquired 13.3% of Polarled and 10% of the Duva field, transactions which are expected to be completed in December 2019. The acquisition of Capricorn is expected to provide production of approx. 6,000 barrels of oil equivalent per day from the Nova field when production commences in 2021 and will give Solveig the competence to act in the role as an operator for exploration licenses in Norway.
“This transaction is in line with the strategy of Solveig becoming an integrated, infrastructure based E&P operating company, combining its gas pipeline assets with exploration, ongoing and future developments and resulting production. We are confident that the combined Solveig and Capricorn organisation, with its highly professional and competent staff, will properly manage the existing portfolio and continue our efforts to realise further growth possibilities in line with the company’s ambitions” stated Solveig’s chairman, Gunnar Olsen.
The agreed purchase price is USD 100 million with an effective date of 1st January 2020 and is subject to standard consents by the Norwegian Ministry of Petroleum and Energy, the Ministry of Finance and relevant partner and third-party approvals as appropriate, all of which are expected in early 2020.