Exxon Mobil Corp. signed an agreement Sept. 26 with Vår Energi AS for the sale of its non-operated upstream assets in Norway for $4.5 billion as part of its previously announced plans to divest about $15 billion in non-strategic assets by 2021.
“Our objective is to have the strongest, most competitive upstream portfolio in the industry,” said Neil Chapman, senior vice president of Exxon Mobil. “We’re achieving that by adding the best set of projects we’ve had in many years and divesting assets that have lower long-term strategic value. This sale is an important part of our divestment program, which is on track to meet our $15 billion target by 2021.”
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 oil-equivalent barrels per day in 2019.
The transaction is expected to close in fourth-quarter 2019, subject to standard conditions precedent, including customary approvals from regulatory authorities. The majority of the Exxon Mobil employees impacted by the sale will transfer to positions at Vår Energi.
In 2017, the company sold its ownership interests in the Exxon Mobil-operated fields Balder, Jotun Ringhorne and Ringhorne East to Point Resources.
The Exxon Mobil refinery in Slagen and network of about 250 independently owned Esso-branded retail sites are unaffected by the agreement.
Vår Energi is owned by the integrated energy company Eni SpA and the Norway-based leading private equity investor HitecVision
Recommended Reading
Kissler: Mideast Tension Elevates Crude Prices—But for How Long?
2024-05-09 - Producers should be aggressive in locking in desirable crude oil prices on an abnormal market strength.
Despite Sanctions Russia Still World’s Fourth Largest LNG Exporter
2024-05-23 - Russia ranked as the world’s fourth-largest LNG exporter in 2023, sending out cargoes of 30 mtpa. Russia’s LNG capacity could surpass 74 mtpa capacity by 2030, according to details published by Flex LNG.
Paisie: OPEC+ Will Be Able to Manage Prices
2024-07-11 - Disappointing economic news has contributed to a drop in oil prices.
TotalEnergies Joins Ruwais LNG Project in UAE
2024-07-11 - French energy giant TotalEneriges joined the two-train 9.6 million tonnes per annum Ruwais LNG project in the United Arab Emirates with a 10% interest. The LNG project is expected to start sending out cargos in the second half of 2028.
DC Appeals Court Sends Louisiana LNG Permit Decision Back to FERC
2024-07-17 - The Washington D.C. Court of Appeals' decision follows a railroad dispute headed to the Supreme Court this fall.