Wintershall Dea sheds infrastructure assets in Norway to focus on upstream

German oil and gas company Wintershall Dea has agreed to sell its 5.0304% interest in the Nyhamna terminal to CapeOmega and its 13.255 % interest in the Polarled pipeline to Solveig Gas Norway.

The transaction on the Norwegian Continental Shelf is part of a broader program aimed at optimizing Wintershall Dea’s global portfolio, following the completion of the merger between Wintershall and DEA in May 2019, the company explained in a statement on Tuesday.

Before DEA’s merger with Wintershall, CapeOmega also bought DEA’s interest in the Nyhamna onshore gas processing plant, the Polarled gas pipeline, and Gassled. In April 2019, CapeOmega was bought by Partners Group, a global private markets investment manager.

“The sale of these two assets is an important step in the direction of capturing value from active portfolio management. The transaction will allow us to streamline our business activities in Norway and focus our efforts on higher priority assets in our portfolio,” said Mario Mehren, CEO of Wintershall Dea.

Wintershall Dea confirmed its commitment to Norway, where it holds interests in over 100 licenses. In the year ended December 31, 2018, Norway accounted for 23.8 % (140 mboe / d) of the group’s aggregated production (590 mboe / d).

“Norway will continue to play an important role in Wintershall Dea’s international portfolio in the coming years and this transaction is in line with our strategy of focusing on our upstream activities and ambition to capture future growth opportunities on the Norwegian Continental Shelf,” said Alv Solheim, Managing Director of Wintershall Dea in Norway

Next to operating three Norwegian producing fields, the company is also developing its own operated Dvalin and Nova fields, and is a partner in several high-profile projects, such as the Njord re-development, Ærfugl and the Snorre Expansion Project.

The transaction is expected to close by the end of 2019, pending approvals from the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance.

Polarled is the first pipeline on the Norwegian continental shelf crossing the Arctic Circle. The pipeline was completed in 2015. It delivers gas to the Nyhamna gas terminal since the fourth quarter of 2018, when the Aasta Hansteen field achieved first production. Polarled is designed for connecting additional future developments in the area. Gassco is the operator of the facility.

The Nyhamna terminal is a gas processing and storage facility initially constructed to process gas from the Ormen Lange field. It also receives volumes from the Polarled pipeline since the fourth quarter of 2018. After processing, the gas is transported through the Langeled pipeline to the central North Sea in the UK. Shell is technical service provider and Gassco is the operator of the facility.

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