Equinor has agreed to divest its interests in the Bakken Field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments, for a total consideration of around USD 900 million.
The transaction covers all of Equinor's operated and non-operated acreage, totaling 242,000 net acres, and associated midstream assets in the Bakken. Entitlement production from these assets in 4Q 2020 was 48,000 barrels of oil equivalent per day (net of royalty interests). In parallel with this transaction, Equinor Marketing and Trading will enter into a term purchase agreement for crude offtake with Grayson Mill Energy.
"Equinor is optimizing its oil and gas portfolio to strengthen profitability and make it more robust for the future. By divesting our Bakken position we are realizing proceeds that can be deployed towards more competitive assets in our portfolio, enabling us to deliver increased value creation for our shareholders. Over the past few years, we have improved the safety, cost efficiency and CO2 intensity of the Bakken assets significantly and I am confident Grayson Mill Energy will continue on this path," says Ander Opedal, president and chief executive officer of Equinor.