Norway: Statoil, Centrica Nail Down USD 1.6 bln Assets Sale

The transaction following Statoil’s divestment and exit from several licenses on the Norwegian Continental Shelf (NCS) in November last year is now closed. The buyer was the UK based energy company and established NCS player Centrica and the consideration was USD 1.525 billion.

An additional payment of up to US$100 million (£63 million) is contingent on future production performance of the Kvitebjørn asset.

“This strategic move strengthens our capacity to further focus on value-creating growth on the NCS, one of the world’s most attractive oil and gas regions where recent discoveries demonstrate the substantial organic growth potential. It is important that we now focus on our core assets to be able to take on new and exciting challenges in the years to come, says Statoil executive vice president for Development and Production Norway, Øystein Michelsen.

Strategic portfolio management

“In recent years we have undertaken a series of divestments and joint ventures to position Statoil as a well-capitalised, technology-focused, upstream company, very recently showcased by our divestment in Statoil Fuel and Retail, says John Knight, executive vice president for Global Strategy and Business Development in Statoil.

“Through active portfolio management we have realised substantial value and further strengthened our growth potential “ says Knight.

The transaction

The transaction includeded partial divestment or full exit from the following areas:

Kvitebjørn / Valemon Area is a significant gas production/development hub in Norway. Statoil remains the operator of both fields.

Heimdal Area: Statoil retains operatorship in Heimdal, but exit from Vale, Frigg Gamma Delta and Fulla.

Heimdal is a key gas export hub in the Norwegian gas system with connections to the UK and to the continental European gas markets.

Vale and Skirne fall outside Statoil’s strategic focus.

The early-phase Fulla and Frigg Gamma Delta discoveries require significant focus and resources in order to commercialise them fully and are better suited being held by a regionally focussed operator.

The effective date of the transaction is 1 January 2012 and the consideration to be paid by Centrica is a post-tax amount of USD 1.625 billion, including a contingent consideration of USD 100 million. Lambert Energy Advisory Ltd were sole advisors to Statoil on this process.

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Source: Statoil, April 30, 2012