Vår Energi and BlueNord have agreed to combine their businesses in a cash-and-shares transaction that will expand Vår Energi into Denmark and create what the companies said would be Europe's largest independent oil and gas producer.
The transaction will add producing assets on the Danish Continental Shelf to Vår Energi's portfolio, increasing the combined company's long-term production to around 450,000 barrels of oil equivalent per day, with approximately 2.4 billion barrels of oil equivalent of reserves and resources and an estimated reserve life of around 15 years.
BlueNord's portfolio includes interests in the Tyra, Halfdan, Dan and Gorm hub areas, contributing about 45,000 boepd of production from 2026 and around 195 million barrels of oil equivalent of proved and probable reserves plus near-term contingent resources. The assets are part of the Danish Underground Consortium, operated by TotalEnergies, and are expected to diversify Vår Energi's portfolio while increasing access to European gas markets through the Nybro and Den Helder gas delivery points.
Under the agreement, BlueNord shareholders will receive 248.4 million newly issued Vår Energi shares and 1.964 billion Norwegian crowns ($204 million) in cash, equivalent to 9.7153 Vår Energi shares and NOK 76.83 in cash for each BlueNord share. Existing Vår Energi shareholders are expected to own about 90.95% of the enlarged company, while BlueNord shareholders will own approximately 9.05%. Eni will remain Vår Energi's majority shareholder with a stake of about 57.33%.
Vår Energi said the combination is expected to increase production, reserves, cash flow and long-term dividend capacity while generating $250 million-$300 million in post-tax synergies between 2027 and 2032 through lower financing and overhead costs and an investment-grade balance sheet. The company also intends to increase its second-quarter 2026 dividend to $350 million, while maintaining its long-term policy of distributing 25%-30% of cash flow from operations after tax over the cycle.
The transaction will be structured as a statutory merger between a wholly owned Vår Energi subsidiary and BlueNord. Completion is subject to BlueNord shareholder approval, regulatory and partner approvals and other customary conditions, with closing expected by the end of 2026.
“This transaction marks a significant milestone in Vår Energi's growth journey, creating the largest independent producer of oil and gas in Europe with a long-term production target of approximately 450 thousand barrels per day and reinforcing our role as a reliable and secure supplier of energy to Europe.
“As Vår Energi continues to grow it is a natural evolution of our strategy to step outside of Norway, and Denmark offers a low risk, stable operating and fiscal regime, with similar characteristics to the NCS. BlueNord brings high-quality, long-life assets on the Danish Continental Shelf with stable production, limited near-term investments and strong cash flow generation.
“Together, we are creating a stronger, more diversified company with increased scale, resilience and cash generation. The combination increases production, reserves and resources, underpinning our ability to deliver long-term value to our shareholders and we look forward to welcoming BlueNord’s shareholders to Vår Energi’s enlarged shareholder base,” said Nick Walker, Chief Executive Officer of Vår Energi.