Arabian Oil to Acquire Interest in Oil Fields Off Norway
AOC Holdings Inc. said Wednesday (Feb. 18) that subsidiary Arabian Oil Co. will soon acquire a 10 percent stake in the Yme oil field off the southwest cost of Norway from Talisman Energy Inc., a Canadian oil explorer having a 70 percent interest in the North Sea field.
Arabian Oil will also acquire a 10 percent stake each in two oil fields adjacent to the Yme field from Talisman, the Tokyo-based holding company said. Oil production in the Yme field was undertaken in the past but is now suspended. Using the latest exploration technologies, production is due to resume in the October to December period of this year, AOC said.
Resumed oil production in the Norwegian field is expected to average 25,000 barrels per day over four years, with initial output projected to peak at more than 40,000 barrels a day. Arabian Oil will spend some $100 million on the deal, including the cost of production facilities, according to people familiar with the contract.