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Exxon to Sell $1b in Norway Assets

Exxon to Sell $1b in Norway AssetsExxon to Sell $1b in Norway Assets

Exxon Mobil Corp. is considering a sale of some of the oilfields it operates in Norway’s North Sea in a deal that could fetch more than $1 billion, two people familiar with the matter said.

Exxon, the world’s biggest listed oil company, is not running a formal process, though it has had discussions with potential buyers, said the people, who asked not to be identified because the deliberations are private, Bloomberg reported.

The company operates the Ringhorne, Balder, Sigyn and Jotun fields in Norway, which produced the equivalent of 64,000 barrels of oil a day in 2015, according to its website.

“We don’t comment on rumors or speculation about commercial matters like this,” Exxon spokesman Tore Revaa said by phone. “Exxon Mobil is a long-term investor in Norway, and we plan to continue as a significant investor.”

The plans were previously reported by Offshore.no. The industry news website said Exxon was planning to sell Ringhorne, Balder and Sigyn, while Jotun is closing down soon.

The industry is cutting costs and investments to weather a slump in crude prices that has battered the business for the past two years.

French oil and gas firm Total is considering selling down a 51% stake in its Martin Linge project off Norway, people familiar with the matter said earlier this month.

BP also announced plans to merge its Norwegian unit into Det Norske Oljeselskap ASA this year, maintaining a 30% stake in the new company.

 

Financialtribune.com