Det norske buys Svenska’s Norwegian subsidiary
- Business & Finance
Det norske oljeselskap ASA, a Norwegian independent oil company, will acquire Svenska Petroleum Exploration AB’s Norwegian Subsidiary for $75 million.
A privately held Swedish company’s subsidiary, Svenska Petroleum Exploration AS, has 15 employees in Norway, of which all will be transferred to Det norske.
Svenska holds 13 licenses in Norway, including the Krafla/Askja (25%), Garantiana (20%), Frigg Gamma Delta (40%) and Fulla/Lille-Frigg (25%) discoveries in the North Sea. In addition, the company holds four exploration licenses in the Norwegian Sea.
Karl Johnny Hersvik, Chief Executive Officer of Det norske said:“This transaction states our ambition of growth on the Norwegian Continental Shelf, and is a solid contribution to building Det norske as an independent E&P company. This increases our ownership in attractive discoveries with resource upside potential and is a logical bolt-on acquisition for Det norske, given the overlap in our asset portfolios.”
Det norske said Wednesday that potential investment decisions on the Krafla/Askja and Garantiana discoveries were expected around 2018.
“The acquisition fits very well in our existing portfolio as investments decisions on the these new developments will occur after start-up of Ivar Aasen and the majority of the CAPEX will thus be funded by Johan Sverdrup cash flow,” says Hersvik.
The transaction is expected to close in the first quarter 2016, subject to regulatory approvals.