Jersey Oil & Gas has completed deal to buy back a 70% share in the North Sea Verbier field from Equinor.
The Norwegian major agreed to pay up to $25 million for the farm-in at the Greater Buchan Area off Moray Firth in 2016. But it opted to sell after tests in April 2019 suggested it would yield 25 million barrels, less than a fifth of original expectations.
JOG will pay $3 million when the UK Oil & Gas Authority sanctions production and $5 million on the extraction of first oil. It will then pay 5% of royalties for the first 12 million barrels, 4% for the next 13 million and 2% for the next 10 million.
Andrew Benitz, CEO of Jersey Oil & Gas, said: "I am pleased that JOG has completed this important step to acquire an additional interest and operatorship in the Verbier discovery together with material exploration upside to facilitate our plan to develop Verbier as part of our GBA development.
"We continue to make solid progress on concept select for the GBA and work closely with contractors, other area stakeholders and the OGA on this important project."
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