On 4 February 2025, Shell UK announced the restart of production at the Penguins field in the UK North Sea with a modern floating, production, storage and offloading (FPSO) facility using Magnora's legacy design. This 'first oil' milestone triggers a USD 4.3125 million payment to Magnora.
While the 'first oil' milestone has a positive impact on Magnora's accounts, it has no cash flow effect. The eventual recipient of funds will be Hermana Holding. With the sale of the legacy business in 2018, Magnora no longer has any employees or activities within its legacy business. Following the demerger of Hermana Holding ASA in the spring of 2024, the right to legacy royalty and license revenue streams were transferred to Hermana. Magnora ASA holds 30 percent of the shares in Hermana which trades on the main list of the Oslo Stock Exchange).
The remaining milestone from the Shell Penguins deal is triggered when Shell reaches a production target of 4m barrels of oil. This event will trigger another USD 4.3125 million payment. For details on the milestone agreements, please refer to the press release issued 15.01.2018 by Sevan Marine and 06.12.2022 by Magnora.
Source: Magnora
Source: Magnora
