Eni announces on December 12 the completion of the merger of Point Resources AS and Eni Norge AS – an associate of Eni S.p.A. – resulting in the creation of Vår Energi, an independent leader in the exploration and production of hydrocarbons in Norway.
The merger took place after the pending conditions were met, among them having secured a third-party financing of USD3 billion non-recourse to sponsors and after receiving regulatory approvals.
Owned 69.6% by Eni and 30.4% by HitecVision, Vår Energi has about 800 employees and 17 oil and gas fields with a wide geographical coverage, from the Barents Sea to the North Sea. Production in 2018 is estimated at 170,000 barrels of oil equivalent per day (boepd) and the company has reserves and resources of more than 1,250 million barrels of oil equivalent (Mboe). Production from existing fields is expected to reach 250,000 boepd by 2023.
HSE performance, project delivery and production efficiency will be priority areas for management, led by Kristin F. Kragseth, CEO, and Philip D. Hemmens, Chairman of the Board.
“We are proud to be a major E&P player on the Norwegian shelf with operated production across all major areas; the Balder and Ringhorne fields in the North Sea, the Marulk field in the Norwegian Sea, and the Goliat field in the Barents Sea. We also have an extensive onshore presence with offices in Hammerfest, Oslo and Stavanger. This position, including a robust organisation, makes the company fit for continued safe operations and future business growth,” CEO in Vår Energi, Kristin Kragseth says.
The creation of Vår Energi AS is a major step forward in the strategy to reinforce Eni’s presence in OECD countries with further upstream potential.
Claudio Descalzi, CEO of Eni S.p.A stated: “This is a fundamental step ahead in our strategy to reinforce Eni’s presence in OECD countries with further upstream potential, such as Norway. The high quality of the human capital as well as of the assets in the portfolio, together with the expansion opportunities still available in Norway, will create a significant upside value to the shareholders of the merged company. Eni will bring into Vår Energi its globally recognized capacity to innovate and its best technology, which has enabled us to achieve remarkable results in recent years, through great discoveries and the start-up of these discoveries in a record time”
“After the last years’ restructuring of the industry, Vår Energi represents a new beginning on the NCS. Backed by Eni S.p.A and HitecVision, we see major opportunities in Norway, and we have ambitious growth plans for the future. We are proud that the oldest license area on the NCS will continue to create value and provide job opportunities for future generations; benefitting Norwegian society, employees, business partners, local communities, shareholders and other stakeholders,” Kragseth highlights.
Vår Energi holds a strategic position in the Barents Sea. The partly electrified Goliat field, with one of the lowest CO2-emitting installations on the NCS, represents the first infrastructure for oil production in the region. Vår Energi aims to further develop this potential through near field exploration activities and increased oil recovery. Furthermore, through the partnership in Johan Castberg, Vår Energi is investing heavily in the future development of Norway’s northernmost oil province.
“With our wide geographical presence on the NCS, including both mature and new assets, we have a solid portfolio representing many growth opportunities. We also have a strong operating organisation with over 50 years’ NCS experience, built on the two predecessor companies’ legacies offshore Norway from the 1960s, and two shareholderswith a long-term perspective on the NCS and a strong business development focus supporting our plans to increase and optimize the company’s footprint”, Kragseth points out.
Vår Energi was officially established on December 10, as Norway’s largest independent E&P company. Vår Energi is dedicated to exploring, developing and producing solely on the Norwegian continental shelf (NCS), with planned investments of 65 billion NOK over the next years. A key project is extending the life of Norway’s oldest license area – the Balder field – towards 2045, giving the first license on the NCS, PL 001, a life span of 80 years.