ExxonMobil selling upstream Norway assets for US$4.5 Billion

The deal includes ExxonMobil's ownership interests in more than 20 producing fields operated mostly by Equinor, including Grane, seen here. Image: Equinor

ExxonMobil has signed an agreement with Vår Energi AS for the sale of its non-operated upstream assets in Norway for US$4.5 billion.

The deal is part of Exxon’s plan to divest approximately US$15 billion in non-strategic assets by 2021.

It includes ownership interests in more than 20 producing fields operated mostly by Equinor, including Grane, Snorre, Ormen Lange, Statfjord and Fram, with combined production of approximately 150,000 boe/d in 2019.

The majority of the ExxonMobil employees impacted by the sale will transfer to positions at Vår Energi, the company said.

“Our objective is to have the strongest, most competitive upstream portfolio in the industry,” ExxonMobil senior vice-president Neil Chapman said in a statement.

“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.”

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

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

The transaction is expected to close in the fourth quarter of 2019.

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