Pandion Partners Aker BP

Norwegian independent Aker BP said December 4 it has agreed to sell a 10% interest in the Valhall area to Pandion Energy, backed by private equity firm Kerogen, for an undisclosed cash amount.

The deal involves 10% of the Valhall and Hod oilfields, including licences PL006B, PL033 and PL033B.

Aker BP in October paid $2bn for Hess’s Norwegian business, including its Valhall (64.05%) and Hod (62.5%) interests – making it sole owner-operator of both fields. Most production from the two fields is liquids, but there is some associated gas, with reserves split about 85:15 between liquids and gas.

CEO of Aker BP, Karl Johnny Hersvik said: "After we announced the Hess transaction, we have seen strong interest to partner with Aker BP in the Valhall area. Through this transaction, we get a partner that shares our ambition of developing the upside potential in these fields". The deal is due to close end 2017.

Pandion is privately-owned and Norway focused. It was founded November 2016 for a management buyout of Tullow Oil Norge (previously Spring Energy) and was prequalified as a Norwegian offshore licensee in June 2017. It said that Valhall  is currently producing some 37,500 barrels of oil equivalent per day (at 100% equity) and "expected to continue to produce for several decades."

Aker BP said it is planning to submit a Plan for Development and Operation for the Valhall Flank West project late 2017, with estimated first oil in 2020, and also planning north and south flank projects.