Monday, November 11, 2019

Equinor Sells Eagle Ford Asset for $325 Mln

November 7, 2019

Eagle Ford production site in Texas. (All photos: Ole Jørgen Bratland)

Norwegan energy company Equinor said it  has signed an agreement to divest to Repsol its 63% interest in, and operatorship of, its onshore business in the Eagle Ford in the US state of Texas.

The transaction is effective October 1, 2019, and covers all of Equinor’s interests in the Eagle Ford Joint Venture with Repsol, covering 69 000 net acres. Following this transaction Repsol will have a 100% interest in the asset.

The total consideration is $325 million.

“This transaction supports Equinor’s strategy to optimise our onshore US portfolio, enhancing our financial flexibility and focusing our capital on our core activities in the country,” said Torgrim Reitan, executive vice president for Development and Production International in Equinor.

“The US is a core area for Equinor, demonstrated by recent acquisitions including assets in the Gulf of Mexico, onshore acreage in the Austin Chalk and the Empire Wind project offshore New York.”

Equinor entered the Eagle Ford asset in 2010 through a joint acquisition with Talisman Energy USA (now owned by Repsol) from Enduring Resources. In 2015, Equinor increased its interest in the joint asset from 50% to 63% and assumed full operatorship.

In a separate agreement, Repsol will acquire a 20% nonoperated interest in the Monument prospect that Equinor is drilling in the Northwest Walker Ridge area in the Gulf of Mexico. Equinor plans to commence drilling this well before the end of the year.

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