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Exxon has agreed to sell off its oil and gas assets in Norway in a $4 billion deal, Reuters sources familiar with the matter said on Thursday, in what will mark an end to its long presence in Norway’s upstream sector.
Exxon is selling its minority-held stages in 20 fields, currently operated by Equinor and Shell. Exxon has been in talks with interested buyers including Equinor—as well as Aker BP, DNO, Lundin Petroleum, Var Energi, and Hitech Vision.
In June, an Exxon spokesman told a Norwegian newspaper that the company was weighing the sale of its assets in Norway. Rystad Energy had at the time estimated that Exxon’s portfolio of Norwegian upstream assets has a value of US$3.1 billion. As of 1 January 2019, Exxon controlled 530 million barrels of oil equivalent on the Norwegian Continental Shelf, the most valuable asset being a stake in the Snorre field, worth nearly US$700 million, according to Rystad.
Exxon announced in August that it was exiting the UK’s North Sea, in a move that could raise $2 billion from the sale of interests in some or all of its 40 oil and gas fields that together account for 5% of UK’s overall production.
Exxon’s divestment in the North Sea in general shows renewed faith in its Permian and Guyana assets—the latter which has high hopes. Exxon’s very first production vessel—the Liza Destiny--has just arrived offshore Guyana, where it has announced 13 discoveries together with its partner in Guyana, Hess Corp. It’s Liza 1 is expected to start up by Q1 2020, producing 120,000 bpd.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.