On September 26, 2019, Vår Energi signed an agreement with ExxonMobil to acquire its upstream assets in Norway 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 barrels of oil equivalents per day (boepd) in 2019. The agreed terms include a cash consideration of USD 4.5 billion subject to closing adjustments. The acquisition closed on December 10, 2019.
The majority of the about 50 employees working on the acquired assets will join Vår Energi. The company plans to invests USD 7 billion in development projects such as Johan Castberg, Balder X and Grand in the 2020-23 period. Other planned development projects in the combined portfolio include Balder X, the Snorre Expansion Project, Grand, and Fenja.
Vår will fund the transaction from existing cash and a reserve-based lending debt facility which has been fully underwritten by BNP Paribas and will later be syndicated. The acquisition has an effective date of January 1, 2019 and is expected to be completed in 4Q 2019 subject to standard conditions precedent, including customary approvals from regulatory authorities. The transaction was examined under the simplified merger review procedure and approved by the European Commission under EU Merger Regulation on November 21, 2019.
Kristin Kragseth, Chief Executive of Vår Energi, says:
“In delivering on our ambitious growth plans, Vår Energi will not only be a major force on the shelf, we are also creating major opportunities for Norwegian suppliers in the years to come, securing employment in many parts of the country."