Norway’s Equinor to sell $900m onshore assets in Bakken, US

Oil field in the Bakken area, North Dakota. Image credit: Einar Aslaksen / Equinor ASA.

Norwegian oil and gas company Equinor is divesting its interests in the Bakken field to Grayson Mill Energy for $900m.

The transaction includes all of Equinor’s operated and non-operated acreage, totalling 242,000 net acres in the US states of North Dakota and Montana.

It also covers associated midstream assets in the Bakken.

Production entitled to Equinor from the assets was 48,000 barrels of oil equivalent per day in the fourth quarter of 2020.

Equinor president and chief executive officer Anders Opedal said: “Equinor is optimising its oil and gas portfolio to strengthen profitability and make it more robust for the future.

“By divesting our Bakken position we are realising proceeds that can be deployed towards more competitive assets in our portfolio, enabling us to deliver increased value creation for our shareholders.”

All Equinor field employees working on the Bakken assets will be moved to Grayson Mill Energy, which is backed by EnCap Investments.

The transaction is subject to the satisfaction of customary conditions, including authority approvals. It will have an effective date of 1 January 2021.

Equinor has unconventional oil and gas operated and non-operated positions in the Bakken in North Dakota and Appalachian Basins in Ohio and Pennsylvania.

In addition, the company holds a large portfolio of offshore assets in the US Gulf of Mexico.