Exxon Mobil’s Norway Sale Could be Substantial
Exxon Mobil’s potential sale of its Norway assets could be the country’s biggest oil and gas transaction in more than a decade.
Exxon Mobil’s interest in exiting the Norwegian side of the North Sea should attract multibillion-dollar offers and help Exxon exit a part of the world that isn’t considered a key focus area, said the energy research firm Wood Mackenzie.
“While Norway is no longer core to the overall business, ExxonMobil’s position is substantial enough to receive an attractive exit price, particularly as Norway remains one of the premium M&A markets in the world,” said Neivan Boroujerdi, WoodMac’s upstream Europe analyst.
Exxon is no longer an active player in Norway, but the largest U.S. energy company holds stakes in more than 20 operating fields and projects in the region, representing about 150,000 barrels of oil equivalent per day. Norway’s Equinor is the operator on many of the assets.
“Exxon Mobil is testing market interest for its non-operated producing assets in Norway,” said Exxon spokesman Todd Spitler. “We continually review our assets for contribution toward meeting the company’s operating needs, financial objectives and potential value to others.”
It’s believed that a number of growing private and independent energy firms focused on the North Sea would be interested in the assets. Norway’s Okea is growing and planning to go public, for instance, while London-based Chrysler is buying the United Kingdom-based North Sea assets of ConocoPhillips.
“In terms of buyers, the new wave of North Sea independents are likely to be the front runners,” Boroujerdi said.