Singapore-based Rex International has agreed to acquire Repsol's 33.84% interest in the mature producing Brage oil and gas field offshore Norway.

The acquisition through Rex's subsidiary Lime Petroleum is for a post-tax consideration of US$42.6 million, said Rex, and will bring net production of about 3440 barrels of oil equivalent per day and net proven plus probable reserves of about 7.3 million boe.

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The Brage field, which is operated by Germany's Wintershall Dea, is located in a water depth of 140 metres, 10 kilometres east of the Oseberg field offshore Stavanger.

The field was discovered in 1980 and production started in 1993.

Although the Brage field has been producing for a long time, work is still ongoing to find new ways of increasing recovery from the field, said Rex.

Dan Brostrom, executive chairman of Rex International, said: “We are pleased that Repsol has chosen Lime Petroleum... following a robust bidding exercise.

"Not only does it transform Lime Petroleum from being solely an exploration company to being an exploration and production company starting from 1 January 2021, it also gives the group a second production field following our success in Oman and adds to the group’s reserves and contingent resources.”

Nordic independent investment bank ABG Sundal Collier has been appointed as financial adviser for a contemplated 2.5-year senior secured bond issue of up to Nkr500 million (US$60.05 million) for Lime Petroleum.

Funds raised will also be used to finance exploration and capital expenditure.

There are five licences covered in the acquisition — PL 053B, PL 055, PL 055B, PL 055D and PL 185 — all of which expire on 6 April 2030.

Repsol has also agreed to pay to (or on behalf of) Lime Petroleum, a Brage decommissioning carry limited to 95% of decommissioning costs for the current Brage field infrastructure, added Rex.