Vår Energi Completes ExxonMobil Norway Acquisition

Tuesday, December 10, 2019

Having now completed the $4.5 billion acquisition of ExxonMobil’s upstream business in Norway, Vår Energi has doubled its production to become the second largest operator on the Norwegian continental shelf (NCS) – with more growth planned in the years ahead.

The acquired fields, mostly operated by Equinor, represent an additional daily production of approximately 150,000 barrels of oil equivalents (boepd) for the company, Vår Energi said.

Kristin Kragseth, CEO of Vår Energi, said, "The ExxonMobil portfolio is a perfect match for our ambitions and business strategy. It reinforces our long-term commitment to further develop the NCS, where we plan to invest NOK 65 billion ($7 billion) in development projects and exploration across the NCS over the next four years. Our portfolio is strengthened, and we will continue to further explore, develop and produce resources and reserves in a profitable and sustainable manner."

Vår Energi was formed in December 2018, backed by integrated energy company Eni (69.6%) and Norway-based private equity investor HitecVision (30.4%).

The company produces oil and gas from 35 fields across the NCS and is operator of four fields: Goliat (Barents Sea), Marulk (Norwegian Sea), Balder and Ringhorne East (North Sea).

Sitting on about 1.9 billion boe total reserves and resources, Vår Energi said it aims to organically grow its current 300,000 boepd production to about 350,000 boepd by 2023.

"Vår Energi will be a major force on the shelf, creating opportunities for Norwegian suppliers, securing employment in many parts of the country. At the same time, we are committed to continuous improvement in all our activity, including investment and development initiatives to address the environmental challenges," Kragseth said.

Categories: Energy Mergers & Acquisitions Industry News Europe Production

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