NCS: It’s official!Source: Vår Energy

NCS: It’s official!

Vår Energi is the official buyer of Exxon’s upstream NCS assets, becoming the second-largest E&P company on the NCS after Equinor, with total reserves and resources of about 1,900 MMboe.

The transaction includes ownership interests in more than 20 producing fields. The fields are operated mostly by Equinor, including Grane, Snorre, Ormen Lange, Statfjord and Fram, with a combined production of approximately 150,000 boepd in 2019.

The agreed terms include cash consideration of USD 4.5 billion subject to closing adjustments.

Vår Energi’s 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.

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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