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ExxonMobil seeks exit from Norway
NORWAY
EXXONMOBIL is looking to offload its remaining upstream interests off Norway’s shores two years a er divesting its operating projects in the region, a company spokesper- son told Reuters.
e US major sold its operating stakes in the Jotun, Balder and Ringhorne elds and other assets on Norway’s continental shelf in early 2017 to local oil company Point Resources and private equity rm HitecVision. ese elds produced 54,000 barrels of oil equivalent per day in 2016. But Exxon retained shares in more than 20 other elds with 170,000 boepd of production that are operated by Norway’s state-owned Equinor and Royal Dutch Shell, including the Ormen Lange gas deposit and the Snorre oil eld.
“Following interest expressed by several parties, ExxonMobil has decided to open a data room to test the market interest for the upstream portfolio in Norway,” company representative Anne Fougner told Reuters, noting that a nal decision had not yet been taken.
Several international oil companies (IOCs)
have quit Norway in recent years amid rising costs and declining production at the region’s maturing elds. BP scaled back its operations in the country in 2016, while Chevron divested its last stake in an o shore Norwegian block last year. This exodus has provided openings for smaller operators and private equity rms.
Aker BP has said it is looking for new acqui- sitions in the area. e company, which is 30% owned by BP, was established in 2016 when BP transferred its Norwegian business to local oper- ator Det Norske in an all-share deal. Two other Norwegian independents – DNO and Okea – have also expressed interest in expanding with purchases. Okea CEO Erik Haugane recently predicted that all oil majors besides Equinor would withdraw from Norway within the next decade.
Fougner declined to comment on the value of Exxon’s remaining assets in Norway, although local business newspaper Dagens Naering- sliv recently reported they could fetch up to $3-4bn.™
Total, Enel drop out of race to buy Dutch energy firm
NETHERLANDS
FRENCH oil major Total and Italian electric- ity giant Enel have reportedly dropped out of a heated contest to acquire Dutch energy company Eneco, sources told Reuters on June 24.
Eneco generates around half of its power from wind and solar plants in the Netherlands, Belgium and the UK, making it highly sought after among energy companies looking to reduce their carbon footprint by shi ing from fossil fuel-based generation to renewables.
e utility’s privatisation was rst suggested in 2017, generating early interest from a number of European electricity and oil and gas compa- nies. But the process was stalled over a disagree- ment between its management and shareholders – currently 53 Dutch cities – over sales options. e two sides nally settled on a plan late last year with the help of a mediator, but the dispute deterred some investors.
e search for a prospective buyer began in May. While Total made an o er to buy Eneco on
its own, Enel led a joint bid with Dutch pension fund APG. e latter is now looking to team up with another bidder, Reuters sources said.
According to the sources, a consortium of Royal Dutch Shell and another local pension fund, PCGM, is still in the running to buy the company. Also le in the race are Austrian investment fund Macquarie and Japanese trader Mitsubishi, the sources said, as well as French nuclear operator EDF.
“This month we’re reviewing non-bind- ing o ers, and we expect to notify the parties involved soon about what we’ve decided, and then we’ll move on [to the next stage],” an Eneco representative told Reuters.
Eneco operates almost 3,500MW of wind, solar, biomass and conventional generation capacity. e company, which Reuters analysts have valued at €3bn ($3.4bn), reported an oper- ating pro t of €162mn ($184mn) for last year, up from €158mn in 2017.™
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