Report: Exxon selling Norwegian business for $4 billion

U.S. oil giant ExxonMobil is about to leave Norway, after more than 125 years operating in the Scandinavian country, as it has found a buyer for its assets there, Reuters reported on Thursday, citing unnamed sources.

Snorre field offshore Norway. Source: Equinor
Snorre field offshore Norway. Source: Equinor

It has been widely reported over the past few months that ExxonMobil is looking to sell off all of its assets in Norway, where it holds interests in over 20 producing non-operated oil and gas fields operated by others, as the company is working to meet its $15 billion divestment target.

In 2017 the company sold its ownership interests in the ExxonMobil-operated fields Balder, Jotun Ringhorne and Ringhorne East to Point Resources.

According to reports, the U.S. company has agreed to sell the remaining assets to Var Energi, a company created recently through a merger between Eni Norway and Point Resources.

Reuters has said that the price agreed for the Norwegian business might be up to $4 billion. The Norwegian news website Dagens Naeringlsiv has also reported on the alleged deal, placing the price estimate between $4 billion and $4,5 billion.

The acquisition of Exxon’s Norwegian business will make Vår Energi the second-largest company on the Norwegian continental shelf with a production of between 300,000 and 350,000 barrels per day, the Norwegian news website reported.

Offshore Energy Today has reached out to Var Energi, seeking confirmation of the reports. The company’s spokesperson said: “As a matter of practice, we do not comment on the details of commercial agreements.”

As previously reported, energy intelligence firm Rystad Energy in June reported that per January 1, 2019, ExxonMobil controlled 530 million barrels of oil equivalent on the Norwegian Continental Shelf. The company’s most valuable asset is its stake in the Snorre field, worth almost $700 million, Rystad said.

According to the Exxon Norwegian business’ website, ExxonMobil is Norway’s oldest energy company – established in 1893.

Offshore Energy Today Staff

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