Lime Petroleum Strengthens Its Norwegian Oil and Gas Portfolio
November 29, 2024
Rex International’s subsidiary Lime Petroleum and its partners have secured new license for the exploration of Sognefjord East area with a tie-back to Brage field, while the company also increased its share in the Yme field following the acquisition of interests from OKEA.
After the successful 2023 Kim discovery within the Brage field, in which Lime has a 33.8434% interest, the Brage partnership further evaluated the surrounding Sognefjord East area for a potential extension of the reservoir to the east into the neighboring EXL004 Carbon Capture & Storage (CCS) Luna license.
The Brage partnership, after extensive discussions with the Luna licence partners and the authorities, had submitted an out-of-round application for a production licence covering this eastern extension.
Official approval of the PL055FS licence was obtained on November 15, 2024, allowing for exploration, and if successful, development of the Sognefjord East area, while co-existing with Luna.
The Brage partnership consists of OKEA (operator 35.2%), Lime (33.8434%), DNO Norge (14.2567%), Petrolia Noco (12.2575%), and M Vest Energy AS (4.4424%).
Plan for Development and Operation of Bestla Field Gets Green Light
The Plan for Development and Operation (PDO) for PL740 Bestla, in which Lime has a 17% interest, was approved by the Norwegian Ministry of Energy on 19 November 2024.
The project is moving forward and will be developed as a tie-back to the Brage Field with first oil expected in early 2027.
The PL740 partnership consists of OKEA (operator 39.2788%), DNO Norge AS (39.2788%), Lime (17%), and M Vest Energy AS (4.4424%).
Lime Wraps Up Acquisition of Interest in Yme Field
Lime’s acquisition of 15% interest in the Yme Field from OKEA, for a post-tax consideration of $15.65 million, first announced in September 2024, was completed on November 29, following approval by the relevant Norwegian authorities and transfer of all related obligations, including decommissioning costs, to Lime.
Lime’s payment of a post-tax consideration of $9.2 million to OKEA in 2027 will be repaid to Lime in four 25% tranches upon completion of four pre-defined stages of abandonment of the field.
Pursuant to the completion of the acquisition, Lime now has a 25% interest in the producing Yme Field, effective from January 1, 2024.
“We are pleased that our strategy to build up reserves and resources on the Norwegian Continental Shelf is moving at a good clip.
“Both the Kim and Sognefjord East targets and the Bestla tie-back to the existing infrastructure in Brage are good examples of our near-field and in-field exploration and development strategy which will minimize additional construction costs and in turn, reduce emissions, while fast-tracking production and extending Brage Field’s lifespan.
“These new developments, together with our increased interest in Yme, will add to our reserves and resources in the years to come,” said Lars B. Hübert, Chief Executive Officer of Lime.
