The sale of Norwegian oil and gas assets of Exxon Mobil will bring $4 billion for the company, Reuters reported this week citing information from sources.
Why is the sale important?
Exxon Mobil is over a century old oil and gas major who started operations in Norway. With the sale of these assets, the company will mark an end to its historical association with the country. The company has been planning to sell its Norway operations, which includes its upstream portfolio. It comprises mostly of minority stakes in over 20 oil fields which are operated by Royal Dutch Shell and local company Equinor.
Reuters cited three unnamed resources in its report suggesting that the sale would bring $4 billion for Exxon. A little while later, local newspaper Dagens Naeringsliv said that Var Energi was buying Exxon’s assets in Norway. It also cited unnamed sources in its report and said that the sale would be announced by the end of this month. A spokeswoman for Exxon said that the company doesn’t comment on its commercial discussions. Var has also declined to comment on the matter.
The road ahead for Exxon
After the news of the sale, the company’s stock witnessed a 1.7% rise in prices during New York trading. The Texas-based company was busy holding talks with several of its peers in recent weeks to finalize an acquisition. It includes companies like Lundin Petroleum from Stockholm, Italian firm Eni-backed Var Energi, Aker BP, Equinor and DNO. HitecVision, a private equity firm. DNO, Lundin, and Equinor could not comment on the matter immediately.
Reuters had reported that the company had finalized the sale process with one of the parties and had agreed on the terms of sale as well. The sale process will be overseen by Jefferies, but it too has declined to comment on the matter.
Exxon is the largest oil and energy company in the world, and by 2017, it was extracting 170,000 barrels of oil equivalents every day in its Norwegian fields. Rystad Energy, a consultancy based in Oslo revealed in June that the company held as many as 530 million barrels of oil equivalent. The entirety of this holding was located at the Norwegian Continental Shelf. In recent years, the company has focused more on US shale oil production. It is focused on shale production in the Permian basin and has been working on developing new oil resources in Guyana as well.