OREANDA-NEWS. LOTOS Exploration & Production Norge (LOTOS), a subsidiary of the Polish energy corporation Grupa LOTOS S.A., has reached an agreement with Centrica Energy Norway, a subsidiary of the UK based Centrica Plc., to acquire shares in 14 licences on the Norwegian Continental Shelf, including one operatorship. The package of oil and gas assets includes producing fields, developments, discoveries and exploration prospects.

The current production from the licences LOTOS acquires is above 5 000 barrels oil equivalents (oe) per day; 70 per cent natural gas and 30 per cent condensate. Reserves added to LOTOS' portfolio following the acquisition will be 9 million barrels oil oe in producing fields and contingent resources of 31 million oe in fields in development planning phase. The split between oil and gas in the fields in the development planning phase is equal to that of the producing fields. In addition there is identified a number of prospective exploration targets, including the Trell prospect expected to spud later this year.

The purchase includes a 5 per cent interest in the Heimdal field, one of the major gas-hubs on the Norwegian Continental Shelf. In addition, it includes a 30 per cent interest in Byggve/Skirne, a 20 per cent interest in Atla and a 25.8 per cent interest in Vale, all of which are producing fields.

LOTOS will also acquire a 10 per cent interest in FriggGammaDelta discovery, a 50 per cent interest and operatorship in Fulla and a 7.9 per cent interest in the Rind discovery. These licences are envisaged to potentially be developed by 2020.

The purchase price is USD 175.8 million.

Gas currently being produced from the fields is handled by Centrica at market based terms.

The agreement will be effective as of 1st January 2013 and subject to customary approvals by the Norwegian authorities.