Norwegian energy giant Equinor has signed a deal potentially worth over £700million to acquire the UK North Sea business of Canadian firm Suncor.
The deal gives Equinor another 40% stake in its key Rosebank project in the West of Shetland – one of the largest untapped fields in the UK – taking its total ownership up to 80%.
It also gives Equinor a 30% stake in the Buzzard oilfield, one of the largest producing fields in the UK at the moment.
Equinor is paying £710million ($850m USD) to Suncor, but £209m ($250m USD) is contingent on a final investment decision on Rosebank, expected this year.
'Reliable partner for UK'
Philippe Mathieu, executive vice president for Exploration and Production International at Equinor, said: “This transaction is in line with our strategy of optimising our oil & gas portfolio and deepening in our core countries.
"We are building on our longstanding position as a broad energy partner to the UK, strengthening our position as a reliable energy provider in Europe, while continuing to deliver on our ambition of becoming a net-zero company.
The transaction will add approximately 15,000 barrels of oil equivalent per day in equity share in 2023 and "create synergies" with Equinor’s existing operations.
The transaction is subject to relevant regulatory approvals.
Rosebank to create 1,200 UK jobs
According to a socioeconomic study by Wood Mackenzie and Voar Energy, Rosebank is estimated to create £8.1bn of direct investment, of which £6.3bn is likely to be invested in UK-based businesses.
The report also estimates that a further £16bn could be generated through indirect and induced economic impacts over the field life resulting in a total gross value add (GVA) of £24.1billion.
Rosebank, which is factored into the UK Government’s carbon budget, will have a significant impact on the UK production outlook. In 2021, the UK only produced 57% of the volumes required to meet oil demand and 41% of national gas demand.
From first production in 2026 through to 2030 Rosebank could account for 8% of the UK’s oil production.
Rosebank will also have a major impact on local supply chains, industry and jobs according to the report.
At its peak and during the development phase, Rosebank is expected to create 1600 jobs, of which 1200 are expected to be UK-based. Across the lifetime of the field, Rosebank will continue to support significant employment with an average of 450 full time employees.
Equinor is also looking to further support the UK economy by investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage (CCS), hydrogen, power, and oil and gas.