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Wintershall chairman Rainer Seele. Image courtesy of Wintershall.

Norway’s Statoil closed a deal Monday to farm down three offshore fields and sell two other assets to Germany’s Wintershall for $1.75 billion dollars.

Statoil will farm down its Aasta Hansteen, Asterix and Polarled fields and exit the Vega and Gjøa fields.

The deal also includes farm downs in the 602, 603, 528 and 258 B exploration licenses in the Vøring area.

Statoil will retain a 51 percent operating stake in Aasta Hansteen, a 51 percent operating stake in Asterix and a 37.07 percent operating stake in Polarled.

All assets included in the deal are located on the Norwegian Continental Shelf.

Wintershall will pay $1.25 billion in cash for the assets and an additional $50 million if Aasta Hansteen reaches certain milestones.

Operatorship of the Vega field will be transferred to Wintershall once government regulators approve the deal.

The company’s expect the transfer to take place by the end of the first quarter 2015.

“With this transaction, we are taking a major step towards achieving our goal of establishing ourselves as one of the leading oil and gas companies in Norway,” Wintershall chairman Rainer Seele said.

The transaction is effective as of January 1, 2014.

Statoil said the deal will allow it to redeploy about $1.8 billion in capital expenditures from the effective date of the transaction until the end of 2020.

Statoil will book the accounting gain for the deal during the fourth quarter once the transaction is complete.