Noreco Ink Deal with Denmark Partners
Norwegian Energy Company ASA announces that it has reached an agreement with its joint venture partners in Denmark with respect to its forfeited licences and related abandonment liabilities.
Noreco has terminated its joint venture and its participation in the Nini and Cecile oilfields (the “Licences”). According to provisions in the respective joint operating agreements, Noreco has forfeited and transferred its participating interests in the Licences to the Partners on a pro-rata basis.
In addition, the settlement for claims on defaulted cash calls and capping of the abandonment liability includes a cash consideration of NOK 60 million, and an 18.2 per cent working interest in the Lulita field.
The restricted cash set aside for future abandonment liabilities will remain in escrow with and on Noreco’s balance sheet. According to the agreement, Noreco will not be held liable for abandonment costs beyond the restricted cash. Final closing of the agreement is subject to approval by the Danish Energy Agency.
The agreement in Denmark leaves Noreco with full ownership of the significant Siri insurance claim, a 10 per cent working interest in the producing Lulita field, and very limited financial obligations in Denmark.