Photo: Illustration; Source: Edison

Edison sells Norwegian subsidiary to Sval Energi

Italian energy player Edison has sold its wholly-owned Norwegian subsidiary Edison Norge, the company that controls the group’s hydrocarbon exploration and production activities in Norway, to Sval Energi.

Edison said that its Norwegian subsidiary controls all Norwegian activities excluded from the scope of the sale of Edison E&P to Energean.

To remind, Energean completed the acquisition of Edison Exploration & Production from Edison earlier this month.

Edison E&P’s portfolio of assets included producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia, development assets in Egypt, Italy, and Norway and balanced-risk exploration opportunities across the portfolio.

In the announcement regarding the Edison Norge sale, the company said that the transaction was approved yesterday by the company’s board of directors.

The agreement is determined based on an enterprise value of $300 million at 1 January 2020, with an estimated impact on the net financial position significantly higher than that value.

The company’s Norwegian subsidiary is participating in the Nova and Dvalin projects currently under development which have net reserves estimated of 25.9 million barrels of oil equivalent as of 31 December 2019 and a portfolio of five exploration licenses.

The closing of the transaction is expected within the first half of 2021 and is subject to the necessary approvals for this type of transactions by the Norwegian authorities.

This transaction almost completes Edison’s divestment plan of its hydrocarbon exploration and production activities to focus on sustainable development, in line with the country’s energy transition and national decarbonisation targets.

In the short term, the company will invest in Italy the financial resources made available by the sale of these assets to support the company’s growth plan in the strategic areas of generation from renewable sources and latest gas technology, services to final clients, energy efficiency and sustainable mobility“, the company stated.

Under the agreement with Sval Energi, 24 people working for Edison Norge would be protected, taking into account the regulatory framework governing the employment rules and the existing market practices in Norway.