Exxon Sells Norwegian Assets for US$4.5 billion
After much speculation, ExxonMobil Corporation has signed an agreement to sell its non-operated upstream assets in Norway to Var Energi AS for US$4.5 billion, the oil and gas powerhouse announced on the 26th September.
Rigzone first reported on a potential sale in late June, when Exxon was “testing market interest” for the assets. A couple of weeks ago, Exxon declined to comment on a sell of its Norwegian assets.
The deal is part of Exxon’s previously announced plan to divest UD$15 billion in non-strategic assets by 2021.
“Our objective is to have the strongest, most competitive upstream portfolio in the industry,” Exxon senior vice president Neil Chapman said in a company statement.
“We’re achieving that by adding the best set of projects we’ve had in many years and divesting assets which have lower long-term strategic value. This sale is an important part of our divestment programme, which is on track to meet our US$15 billion target by 2021.”
The transaction includes ownership interests in more than 20 producing fields operated mostly by Equinor ASA with a combined production of approximately 150,000 oil-equivalent barrels per day in 2019.
“This transaction is a major milestone in the short history of Var Energi and a proof of our commitment to further develop the Norwegian Continental Shelf,” Var Energi chief executive Kristin Kragseth said.
“In delivering on our ambitious growth plans, Var Energi will not only be a major force on the shelf, we are also creating major opportunities for Norwegian suppliers in the years to come, securing employment in many parts of the country.”
Exxon said the majority of its employees impacted by the sale will transfer to positions at Vår Energi.
Jeffries served as financial advisor to Exxon during the acquisition.
The transaction is expected to close in the fourth quarter of 2019.
Source: Rigzone