Aker BP has entered into an agreement with PGNiG Upstream Norway AS to swap its 3.3 percent interest in the non-operated Gina Krog field and an 11.9175 percent interest in license 127C, in exchange for a 5 percent interest and operatorship in license 838 and a cash consideration.

License 838 contains the recent Shrek discovery near the Aker BP operated Skarv field. The transaction and the transfer of operatorship to Aker BP will enable an efficient development of this discovery as a tie-back to the Skarv FPSO. The license also holds further exploration potential.

License 127C contains the Alve Nord discovery and the Alve NE prospect, which is also located in the Skarv area. Aker BP plans to drill an exploration well in the license in 2020.

The transaction will provide Aker BP with a total cash consideration of up to USD 62 million, consisting of a firm payment of USD 51 million upon closing and an additional payment of USD 11 million contingent on a development of the Alve Nord discovery.

After this transaction, Aker BP will hold 35 percent interest in license 838 and 88.0825 percent interest in license 127C, while it will have fully divested its interest in the Gina Krog field. The effective date for the transaction is 1 January 2020.

The transaction is subject to approval by the Norwegian authorities.