Danish Energy Agency (DEA) has granted its approval to Norwegian Energy Company (Noreco) for the acquisition of Shell’s Danish upstream assets.
Noreco is now one step closer to completing its takeover of Shell’s upstream assets in Denmark after receiving government approval for the $1.9 billion transaction
“Through this transformational acquisition, Noreco will become the second largest oil and gas producer in Denmark and establish itself as a considerable exploration and production company in the North Sea,” says Riulf Rustad, Chairman of the Board of Noreco.
Included in the acquisition are proven and probable (2P) reserves of 209 million barrels of oil equivalents (mmboe) based on an independent CPR assessment as per year-end 2017, of which 65% are liquids. The seller’s share of production from DUC in 2017 was 67 thousand barrels of oil equivalents per day (mboepd).
Altinex AS, a wholly owned subsidiary of Noreco, acquires 100% of the shares in Shell Olie- og Gasudvinding Danmark B.V. (SOGU) (the “Acquisition”) and thereby becomes the indirect owner through SOGU.