The Strategist

ExxonMobil is selling its Norwegian assets for $ 4.5 billion

09/27/2019 - 06:48

ExxonMobil, an American oil and gas company, has reached an agreement on the sale of its Norwegian exploration and oil production assets to local Var Energy for $ 4.5 billion, Exxon said in a press release.

Minale Tattersfield via flickr
Minale Tattersfield via flickr
The assets include Exxon's shares in more than 20 existing fields, with most of them being operated by the Norwegian Equinor. The total production at these fields is about 150 thousand barrels of oil equivalent per day.

The transaction, which is expected to close in the fourth quarter of 2019, is part of Exxon’s plan to sell non-core assets worth $ 15 billion by 2021.

In the past few weeks, Exxon has been negotiating a sale of assets in Norway with a number of companies. Among them are Norwegian Var Energi, Equinor, Aker BP, DNO, Swedish Lundin Petroleum and private investment company Hitech Vision. According to Reuters, assistance in processing transactions will be provided by the American banking group Jefferies.

In mid-August, Reuters sources reported that Exxon Mobil was considering selling its assets in the North Sea off the coast of the UK after more than 50 years of work in the region. Now the company is producing there about 80 thousand barrels of oil and 12.5 million cubic meters of gas per day. The sale of these assets could bring Exxon up to $ 2 billion.