Oil and gas company Neptune Energy will be divesting its non-operated working interests in three producing fields and two export pipelines on the Norwegian Continental Shelf.

Neptune said that it signed sale and purchase agreements with OKEA and M Vest Energy. Under the deal, the assets the company will be divesting include stakes in the producing Draugen, Brage, and Ivar Aasen fields as well as the Edvard Grieg Oil Pipeline and the Utsira High Gas Pipeline. After the transaction closes, Neptune will have no stake in any of the assets.

OKEA will acquire a 2.2 percent interest in the Ivar Aasen Unit while M Vest will acquire a 0.8 percent interest in Ivar Aasen, 7.56 percent in the Draugen field, 4.4 percent in Brage, 1.2 percent in the Edvard Grieg Oil Pipeline, and 1.8 percent in the Utsira High Gas Pipeline.

Neptune stated that the transaction underpins its corporate strategy to focus its portfolio on core areas. In Norway, these are the Gjøa, Gudrun, Njord, Dugong, and Snøhvit fields.

OKEA claimed that this sort of deal strengthens its position in the Ivar Aasen area and represents a first step towards the realization of the company’s growth strategy.

The agreed consideration for Neptune totals up to $35 million while all decommissioning liabilities will be transferred to the buyers. The effective date for the agreements is January 1, 2022, subject to approvals from the Norwegian authorities.

M Vest said in a separate statement that the acquisition will add 7-8 million barrels of oil equivalents in reserves with significant upside potential. For 2022 the company expects production of 1,700 – 1,800 barrels of oil equivalents per day.

“M Vest Energy is very pleased to announce a transaction that will further transform the company, a journey that started with the acquisition of 5 percent of the Polarled gas pipeline in 2020. We are now partners in transportation, exploration, field development, and production licenses and are well-positioned for future growth,” Jonny Hesthammer, CEO of M Vest, said.