Largest UK North Sea Project Gets New JV Partner

Published at 09:06AM - 10/08/16

The Calgary-based Suncor Energy UK Limited (Suncor) announced today it will acquire a 30% participating interest in the UK North Sea Rosebank project from OMV (U.K.) Limited (OMV).

Under the agreement signed, Suncor will make an initial payment of US$50 million (£38.37 million) to the Austrian oil and gas firm.

“This transaction rebalances our OMV portfolio by reducing future investment requirements while retaining a large stake in the Rosebank development,” OMV Executive Board member responsible for Upstream, Johann Pleininger, said.

Largest UK North Sea Project Gets New JV Partner

“At the same time, the addition of Suncor, with their substantial offshore experience, to the Rosebank consortium, will strengthen the venture considerably as it moves towards project implementation,” Pleininger added.

The transaction is expected to close in the fourth quarter of the year, following conditions and regulatory approval, Suncor informed in a statement.

Largest UK North Sea Project Gets New JV Partner
Suncor’s portfolio of UK assets includes a 29.9% stake in the Buzzard field

If the co-venturers in the project approve the Rosebank final investment decision (FID) and Suncor chooses to take part, then it will pay an additional consideration to OMV of up to US$165 million (£126.6 million).

The project is expected to add to Suncor’s already existing portfolio of UK assets.

Rosebank to Produce 100,000 bpd

The Rosebank project is currently in the front-end engineering and design (FEED) phase.

It has a capacity of 100,000 barrels of crude and 80 million cubic feet of natural gas per day, Suncor informed.

The field is located approximately 80 miles northwest of the Shetland Islands in water depths of around 3,600 feet.

It was discovered in December 2004 and is now considered as one of the best and largest remaining undeveloped resources in the UK North Sea.

Following the closing of the transaction, Rosebank will be operated by Chevron North Sea Limited, with an interest of 40%, together with Suncor Energy (30%), OMV (20%) and DONG E&P (10%).