Gjøa platform; Source: Neptune Energy

Intra-group merger on Vår Energi’s agenda

Norwegian oil and gas player Vår Energi has set the wheels into motion to complete an intra-group merger with its wholly-owned subsidiary Vår Energi Norge. This is slated to be wrapped up next quarter.

Gjøa platform; Source: Neptune Energy

Neptune Energy Norge became Vår Energi Norge following Vår Energi’s acquisition of Neptune Energy’s Norwegian oil and gas business, covering 12 producing assets, of which three are operated and located in the company’s strategic hub areas, while seven are Equinor-operated assets.

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The boards of directors of the company and Vår Energi Norge have now entered into a joint plan for an intra-group merger of the two entities to simplify the corporate structure and fulfill Norwegian regulatory requirements.

Based on the plan’s terms, the merger will be structured as a simplified merger between a parent company and a wholly-owned subsidiary without merger consideration, with the firm as the surviving and acquiring entity.

Furthermore, this merger plan will be registered with the Norwegian Register of Business Enterprises while the shareholders of Vår Energi will receive a written notification. The completion of the merger, subject to due and timely approvals and other conditions, is expected to occur around the end of the second quarter of 2024.

Recently, Vår Energi changed its timeline for the first oil from the Balder X life extension project in the North Sea offshore Norway, bumping it to the fourth quarter of 2024. The company is determined to achieve a 50% emissions reduction on operated fields by 2030 for Scope 1.

The Norwegian player intends to make this happen with the electrification of the Balder/Grane area, Balder area optimization with the FPSO Jotun in production, and the Balder FPU removal.