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Friday, 29 August, 2008, 18:20 GMT | more prices >>

Noreco plans Faroe farm-out

By Upstream staff

Norwegian player Noreco has entered into a 15% farm-out deal with Faroe Petroleum for the PL271 and PL302 licences on the Norwegian continental shelf.

Faroe will earn its stake in the licences by carrying Noreco's part of the costs up to the drilling budget level for the Yoda well which will shortly be drilled by operator StatoilHydro.

Completion of the deal is pending customary approvals.

Noreco took a 40% interest in licenses PL271 and PL302 from Dong in 2006.

The company subsequently sold 10% of the licenses to Talisman for a 17.5% interest in PL347 and PL348 in the Norwegian Sea.