ExxonMobil sell Norwegian upstream operations $4.5 billion

ExxonMobil to sell Norwegian upstream operations for $4.5 billion

5:38 AM, 27th September 2019
ExxonMobil logo
ExxonMobil logo

IRVING, US: ExxonMobil signed an agreement to sell its non-operated upstream assets in Norway for $4.5 billion to Var Energi AS.

This is part of its ExxonMobil’s previously announced plans to divest approximately $15 billion in non-strategic assets by 2021.

ExxonMobil retains downstream refining operations and Esso-branded retail network 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 oil-equivalent barrels per day in 2019.

The transaction is expected to close in the fourth quarter of 2019, subject to standard conditions precedent, including customary approvals from regulatory authorities. The majority of the ExxonMobil employees impacted by the sale will transfer to positions at Vår Energi.

In 2017 the company sold its ownership interests in the ExxonMobil-operated fields Balder, Jotun Ringhorne and Ringhorne East to Point Resources.

The ExxonMobil refinery in Slagen and network of approximately 250 independently owned Esso-branded retail sites are unaffected by the agreement.

“Our objective is to have the strongest, most competitive Upstream portfolio in the industry. 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,” said Neil Chapman, senior vice president of ExxonMobil.

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