Lime Petroleum buys stake in Repsol’s North Sea area

Lime Petroleum, a Norwegian subsidiary of Singapore’s Rex Worldwide, has accomplished the acquisition of a stake within the Repsol-operated Yme area situated offshore Norway.

Lime Petroleum entered right into a sale and buy settlement with Kufpec Norway in August for the acquisition of a ten per cent curiosity within the area for a post-tax consideration of $68 million.

The completion was concluded on 23 December with an preliminary fee of $55 million. Deferred fee of the stability, together with the settlement prices, will likely be paid in 30 working days after the completion.

As a part of the settlement, ABG Sundal Collier has been engaged to boost NOK 250 million (roughly $25.5 million) from the faucet mechanism within the bond arrange in June. The faucet will likely be raised throughout January 2023, with ABG Sundal Collier because the underwriter. After the faucet subject, the overall bond will likely be NOK 1,200 million (roughly $122.2 million).

Within the announcement concerning the deliberate acquisition from August, Rex defined that the manufacturing from the Yme area will contribute to its goal of reaching a manufacturing of 20,000 bpd throughout numerous geographies.

The Yme area was found in 1987 situated in Block 9/2 and 9/5 within the Egersund Basin, roughly 130 kilometers from the Norwegian shoreline.

Nevertheless, it didn’t begin manufacturing till 1996. Again in 2001, manufacturing ceased as a result of the operation of the sector was not considered worthwhile. Repsol took over the venture in 2015 and submitted a revised PDO for the sector in December 2017, which was permitted in March 2018.

The brand new improvement venture entailed the engineering, procurement and set up of a brand new wellhead module on prime of the prevailing amenities, the modifications and upgrading of the Maersk Inspirer cellular offshore drilling and manufacturing unit previous to set up within the area and subsequent hook-up to present wells in and installations on the seabed offshore.

After years of delays, the Yme area began producing once more in late October 2021, however had been shut down a number of instances since then.

The primary shutdown occurred in November 2021, lower than a month after the primary oil, to “assess the excessive oil in water readings,” whereas the second befell in Could 2022. In September, Repsol introduced it had been compelled as soon as once more to quickly shut down the sector on account of technical points.