ExxonMobil sells non-operated Norwegian North Sea assets for $4.5 billion

U.S. energy giant ExxonMobil has signed an agreement with Vår Energi for the sale of its non-operated upstream assets in Norway for $4.5 billion.

ExxonMobil said that the sale to Vår Energi was part of its previously announced plans to divest approximately $15 billion in non-strategic assets by 2021.

Exxon has for months indicated its interest in selling those assets and the sale continues the exodus of American energy firms from the North Sea to focus on U.S. shale and other international prospects like Guyana.

Neil Chapman, SVP of ExxonMobil, stated: “Our objective is to have the strongest, most competitive upstream portfolio in the industry. We’re achieving that by adding the best set of projects we’ve had in many years and divesting assets that have lower long-term strategic value.”

The transaction includes ownership interests in more than 20 oil and gas producing fields operated mostly by Equinor, including Grane, Snorre, Ormen Lange, Statfjord, and Fram, with a combined production of approximately 150,000 oil-equivalent barrels per day in 2019.

The transaction is expected to close in the fourth quarter of 2019, subject to standard conditions precedent, including customary approvals from regulatory authorities.

The majority of the ExxonMobil employees impacted by the sale will transfer to positions at Vår Energi.

It is worth reminding that the company sold its ownership interests in operated fields Balder, Jotun Ringhorne, and Ringhorne East to Point Resources back in 2017.

Also, the ExxonMobil refinery in Slagen and network of approximately 250 independently owned Esso-branded retail sites are unaffected by the agreement.