Energy Economy

24 May 2022

Norway Oil Firm Okea to Initiate Dividend, Buy North Sea Assets

24 May 2022  by   
Norwegian independent petroleum firm Okea announced its first dividend payment on Monday and separately said it agreed to buy a portfolio of mostly oil-producing North Sea assets from Germany's Wintershall Dea.

Okea, which went public in 2019, said it will pay 0.90 Norwegian crown per share to its owners next month and intends to hike this to payments of 1.0 crown in the third and fourth quarters respectively.

Oslo-listed Okea will buy stakes in three offshore fields from Wintershall Dea for $117.5 million in cash plus a contingent consideration based on output as well as on oil prices exceeding $80 per barrel from 2022 to 2024.

The acquisition increases Okea's output by between 5,000 and 6,000 barrels of oil equivalent per day (boepd) this year, rising to at least 7,000 boed in 2023 and 2024 and with further potential for increases, the company said.

In the first quarter this year, the company's output averaged 14,900 boed.

As part of the Wintershall deal, Okea takes a 35.2% stake in Norway's Brage and will also become operator of the field. In addition it will take a 6.46% stake in the Ivar Aasen field and a 6% stake in Nova.

Okea said it expects to make an annual cost savings of between $4 million and $7 million from the acquisition.


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