TotalEnergies to Sell Non-Operated Oil Assets Offshore Norway

Core Viewpoint - TotalEnergies is divesting its minority non-operated stakes in three mature oil and gas fields offshore Norway to enhance its upstream portfolio [1][2]. Group 1: Divestment Details - TotalEnergies EP Norge has signed an agreement to sell its 39.89% non-operated interest in the West Ekofisk and Albuskjell fields to Vår Energi [2]. - The company has also agreed to sell its 20.23% non-operated interest in the Tommeliten Gamma field to Orlen Upstream Norway [2]. - The three fields, located in the Greater Ekofisk Area, ceased production in 1998 and are set to be redeveloped under the Previously Produced Fields project (PPF) [2]. Group 2: Future Plans and Implications - The completion of these transactions is contingent upon the Final Investment Decision for the PPF project, expected in Q4 2025, along with regulatory approvals [3]. - TotalEnergies aims to high-grade its upstream portfolio by pursuing value-accretive divestment opportunities [3]. - Vår Energi will increase its ownership interest in the PPF project from 12.388% to 52.284%, thereby strengthening its position in the Greater Ekofisk Area [4]. Group 3: Reserves and Production Outlook - The deal is projected to add approximately 38 million barrels of oil equivalent in net proved plus probable reserves, characterized by low operating costs per barrel and potential for further growth [5]. - The Final Investment Decision for the PPF project is anticipated in Q4 2023, with production expected to commence by the end of 2028 [5].