Norwegian oil and gas major Statoil might lose some of its interest in the Agbami field, offshore Nigeria. In addition, the company might have to pay NOK 1.6 billion ($187.7M) to its field partners.
Currently, Statoil has 20.21% interest in Agbami, operator Chevron has 67.30%, and Petrobras holds the remaining 12.49% interest. The field lies approximately 110 kilometers off the Nigerian coastline and it started producing oil in July 2008.
According to Statoil’s press release on Friday, the company has received an Expert calculation of revised tract participations for the Agbami field. Assuming the revisions are implemented, Statoils says the calculation will result in a reduction of 5.17% in Statoil’s equity interest in the field to 15.04%.
“Statoil previously initiated arbitration proceedings to set aside interim decisions made by the Expert. By a decision received by Statoil on November 4, 2015, the arbitration tribunal has declined to set aside the Expert’s interim decisions,” the company explained in its press release.
Statoil says it is currently assessing its position in relation to the Expert’s decision and the decision of the arbitration tribunal.
Statoil says it has so far made an accrual of NOK 7.5 billion ($877M). Assuming implementation in accordance with the Expert ruling, Statoil will have to compensate other equity owners at Agbami of about NOK 1.6 billion in addition to the accrual as of end third quarter 2015, the company explained.
Statoil added that eventual settlement of any imbalance amount would be made over time through cash-calls issued by the unit operator.
Agbami is a subsea development with wells tied back to a floating production, storage and offloading (FPSO) vessel. As of early 2015, eight of the wells were producing. According to Chevron, the next phase, Agbami 3, is a five-well drilling program that began drilling in early 2015 and is expected to start production in 2016. Drilling is scheduled to continue through 2017.