Vår Energi wraps up $4.5bn acquisition of ExxonMobil’s Norwegian upstream assets

Vår Energi celebrated its first anniversary by wrapping up its previously announced $4.5 billion acquisition of the non-operated upstream assets of ExxonMobil in the Norwegian North Sea and the Norwegian Sea.

The Norwegian oil and gas company, which is owned by Eni (69.6%) and HitecVision (30.4%), has doubled its production from the Norwegian Continental Shelf (NCS) following the close of the deal, as per the latest energy acquisition news.

The deal announced in September 2019 adds nearly 150,000 barrels of oil equivalents (boepd) of daily production from more than 20 fields, which include the Grane, Snorre, Fram, Ormen Lange, and Statfjord fields alongside others. Most of the acquired Norwegian offshore fields are operated by Equinor.

The acquired fields, mostly operated by Equinor, represent an additional daily production of approximately 150,000 barrels of oil equivalents (boepd) for the company.

Vår Energi, the operator of the Ringhorne East fields, has closed its $4.5bn acquisition of ExxonMobil’s Norwegian upstream assets. Photo: courtesy of Vår Energi.

Vår Energi is now involved in the oil and gas production from 35 fields on the Norwegian Continental Shelf. The Norwegian oil and gas company is the operator of the Goliat field in the Barents Sea, the Marulk field in the Norwegian Sea, and the Balder and Ringhorne East fields in the North Sea.

The company, which now claims to be the second-largest oil and gas operator on the Norwegian Continental Shelf has total reserves and resources of around 1,900 million boe. It also expects its new total production to be close to 300,000 boepd and to organically grow further to almost 350,000 boepd in 2023.

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.”