www.northpet.com
Northern Petroleum Plc is an oil and gas exploration, development and production company focused on the European Union and nearby areas. The Company is an operator of both onshore and offshore projects including a producing oilfield and boasts a management and technical team of the highest quality.
Northern Petroleum and Shell complete Sicily Channel licence deal
Northern Petroleum PLC announces said its wholly owned subsidiary Northern Petroleum (UK) Ltd and Shell Italia E&P SpA have completed all the conditions under the agreement for the farm-out to Shell of six of Northern's offshore Sicily Channel licences in Italy announced on December 4 2008
Licences GR17-NP, GR18-NP and GR19-NP are 55 percent held by Shell and 45 percent by Northern, while Shell holds 70 percent in GR20-NP, GR21-NP and GR22-NP and Northern the remaining 30 percent.
At completion Shell paid €1.9 million covering all of Northern's back-costs on these licences. Shell will further pay all costs of the Q4 2008 reprocessing and the Q1 2009 2D seismic programme. Thereafter they will fund all costs of two 3D seismic surveys if proposed by Shell and the optional drilling and testing of a first well.
Northern will remain the operator during the initial seismic phase and Shell will assume operatorship for the drilling phase.
The deal with Shell also envisages that Northern and Shell will hold further discussions on expanding the partnership in Italy.
Northern Petroleum said it is now progressing the winter 2009 2D seismic campaign. Negotiations with the preferred contractor are close to completion.
