VNG has struck a deal with Chevron to acquire a stake in the Draugen field in the Norwegian Sea that is set to double the German player’s production.
The expansive independent is set to pick up the US company’s 7.56% interest in Shell-operated production licence 093 that hosts the field under the transaction unveiled on Thursday, which is effective from 1 January but remains subject to approval by the authorities.
Shell holds a 44.56% operating stake in the licence with remaining partner Petoro on 47.88%.
VNG said in a statement the deal, for which a value was not disclosed, would double its current output to more than 4000 barrels of oil equivalent per day.
It will also extend the company’s acreage in the Halten terrace area where it recently made the landmark Pil discovery in its operated PL586, with a further sidetrack well now being drilled at the nearby Bue prospect.
“We are not only boosting production and reserves significantly, but also taking a purposeful stride in strengthening our position on the Halten terrace,” said managing director Atle Sonesen, adding the company intends to take a leading role in the area in future.
VNG is also a partner in the nearby Njord and Hyme fields, as well as in the Snilehorn discovery, and was last year awarded operatorship of PL753 under Norway’s Awards in Pre-defined Areas round.