Vår Energi acquires ExxonMobil’s upstream assets in Norway

Vår Energi AS, owned by Eni and HitecVision, has today signed an agreement with ExxonMobil to acquire its upstream assets in Norway. The transaction includes ownership interests in more than 20 producing fields operated mostly by Equinor, including Grane, Snorre, Ormen Lange, Statfjord and Fram, with a combined production of approximately 150,000 barrels of oil equivalents per day (boepd) in 2019.

The agreed terms include a cash consideration of USD 4.5 billion subject to closing adjustments. The acquisition has an effective date of 1 January 2019 and is expected to be completed in Q4 2019 subject to standard conditions precedent, including customary approvals from regulatory authorities.

Vår Energi will become the second largest E&P company on the NCS after Equinor, with total reserves and resources of about 1,900 million boe. Total production is expected to be about 300,000 boepd in 2019, growing organically to more than 350,000 boepd in 2023 as the company invests about USD 7 billion in development projects such as Johan Castberg, Balder X and Grand in the 2020-23 period.

The ExxonMobil portfolio is a strategic fit for Vår Energi and will add interests in more than 20 producing fields in the North Sea and Norwegian Sea allowing the extraction of commercial and logistical synergies. 

The acquisition marks an important milestone both for Vår Energi and the company’s shareholders Eni and HitecVision, delivering on the growth ambitions set out when merging Point Resources and Eni Norge to create Vår Energi in 2018.

The majority of the about 50 employees working on the acquired assets will join Vår Energi and take part in the further growth and development of the company in the years to come.

With this acquisition, Vår Energi continues to expand its material and diversified portfolio of oil and gas producing assets, development projects and attractive exploration licenses. Vår Energi is already the largest oil producer in the Barents Sea, and will be strengthening that position through its participation in the Johan Castberg development.

Other planned development projects in the combined portfolio include Balder X, the Snorre Expansion Project, Grand and Fenja, providing an organic platform for further growth in the North Sea and Norwegian Sea. The financial strength from the producing assets provides a basis for further investments in development projects and exploration, as well as future M&A opportunities. 

Vår Energi will fund the transaction from existing cash resources and a Reserve Based Lending debt facility which has been fully underwritten by BNP Paribas and will subsequently be syndicated.

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