Idemitsu Petroleum Norge to sell part of participating interests of Production Licenses in Barents Sea

20^th October 2020

Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director and CEO: Shunichi Kito, the “Company”) is pleased to announce that Idemitsu Petroleum Norge AS^*1 (Head Office: Oslo Norway; Managing Director: Futoshi Tsuneyama), a wholly owned subsidiary of Idemitsu Snorre Oil Development Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Jun Miki)^*2, has entered into an agreement with Lundin Energy Norway AS (Head Office: Oslo Norway), to sell a 10% participating interest in production licences PL 537 & PL 537B including Wisting discovery and a 15% participating interest in production licences PL 609, PL 609B, PL 609C, PL 609D and PL 851 including Alta discovery in the Barents Sea, Norway.

*1: Shareholders: Idemitsu Snorre Oil Development Co., Ltd. (100 %)

*2: Shareholders: Idemitsu Kosan Co.,Ltd. (50.5 %), Osakagas Summit Resources Co., Ltd. (49.5 %)

Idemitsu Petroleum Norge AS acquired a 20% participating interest in PL537 & PL537B, and a 30% participating interest in PL 609, PL 609B, PL 609C, PL 609D and PL 851 through the Norwegian licensing rounds. The Wisting and Alta discoveries were made in PL 537 in 2013 and PL 609 in 2014 respectively. Studies are ongoing with a view to progressing these discoveries to development.

The transaction is part of the Company’s long-term business strategy, and capital and cash management plan. It will reduce development cost exposure in future. A cash consideration of USD125 million is to be paid on completion of the transaction. (The transaction is subject to Norwegian authority approvals.)

【Change of licence share in the production licenses in Barents Sea】

Original article link:

https://www.idemitsu.com/news/2020/201020.html