OSLO/LONDON (Reuters) – Norwegian oil company Equinor has increased its stake in the Caesar Tonga oilfield in the U.S. Gulf of Mexico by buying Royal Dutch Shell’s 22.45% stake for $965 million in cash.
The sale to Equinor overrides a sale Shell had agreed in April with Israeli oil and gas producer Delek Group to acquire the same stake for an identical price.
Shell said in a statement that Equinor “exercised its preferential rights to acquire Shell’s 22.45% non-operated interest, that was to be acquired by Delek.”
It is not uncommon for existing partners in oil and gas projects to pre-empt new entrants from buying a stake.
The deal will increase Equinor’s interest in the deepwater field, operated by Anadarko, to 46%, giving the company