Danish energy company Dong Energy has agreed to divest ownership in some oil and gas fields in Norway to Faroe Petroleum.

The company will through its Norwegian subsidiary DONG E&P Norge AS divest ownership shares in five producing Norwegian oil and gas fields the Ula field (20 percent working interest); two tie-back fields to Ula, namely: Tambar (45 percent working interest) and Tambar East Unit (37.8 percent working interest); Oselvar (55 percent working interest); and the Trym gas field (50 percent working interest)

David Cook, Executive Vice President in DONG Energy, says: “It is very satisfying that we have reached an agreement with Faroe in respect of these five assets. This transaction is an important step towards optimizing our oil and gas asset portfolio with a focus on high quality, low-cost assets.”

Dong Energy said it would continue as a partner in the Norwegian fields Ormen Lange, Alve, Marulk and Gyda, and as operator of the Mjølner discovery.

In 2015, the five fields’ daily contribution was up to approximately 12,000 barrels of oil equivalent (boe). In total, DONG Energy’s oil and gas business produced approximately 112,000 boe per day in 2015. The production licenses are located in the southern part of the Norwegian sector of the North Sea.

According to the buyer, Faroe Petroleum, the company will pay $70.2 million, and it is expected that the acquisition will be completed by the end of 2016.

Graham Stewart, Chief Executive of Faroe Petroleum, said: “We are delighted to announce the acquisition of these high-quality assets in the Norwegian North Sea. The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway. As well as the strategic nature of this deal, the acquired assets will have a material impact on production, reserves, cash flow and debt capacity.

“We have reviewed a significant amount of opportunities in the lead up to this, and as a pre-qualified operator in Norway, this portfolio of assets provides the most strategic sense for us, delivering synergies and upside potential from our existing portfolio.