Vår Energi doubles Norwegian output after buying ExxonMobil’s business
Oil and gas company Vår Energi has completed the acquisition of ExxonMobil’s upstream business in Norway and doubled its production in the country.
Vår Energi also said on Tuesday it had turned one year as a company on December 10. To remind, Point Resources and Eni Norge merged in December 2018 to create Vår Energi.
In late September 2019, ExxonMobil agreed to sell its offshore oil field interests in Norway to Vår Energi for $4.5 billion. Most of these fields are operated by Equinor, including Grane, Snorre, Ormen Lange, Statfjord, and Fram. The European Commission approved the sale in November.
With the closing of the ExxonMobil acquisition, Vår Energi doubled its production from the shelf. The acquired fields represent an additional daily production of approximately 150,000 barrels of oil equivalents (boepd) for the company.
Kristin Kragseth, CEO of Vår Energi, said: “The ExxonMobil portfolio is a perfect match for our ambitions and business strategy. It reinforces our long-term commitment to further develop the NCS, where we plan to invest NOK 65 billion in development projects and exploration across the NCS over the next four years. Our portfolio is strengthened, and we will continue to further explore, develop and produce resources and reserves in a profitable and sustainable manner.”
Vår Energi said it is now the second-largest operator on the NCS, with total reserves and resources of about 1,900 million boe. The new total production is expected to be about 300,000 boepd growing organically to about 350,000 boepd in 2023.
Following the acquisition, 33 employees from ExxonMobil will join Vår Energi.