INEOS Energy to sell its Norwegian oil and gas business to PGNiG for $615m

 INEOS Energy has today announced an agreement to sell its Oil and Gas business in Norway to PGNiG Upstream Norway AS for a consideration of $615 million.  The deal includes all INEOS Oil & Gas interests in production, licenses, fields, facilities and pipelines, on the Norwegian continental shelf.

INEOS E&P Norge AS produces around 33,000 BOE per day from the Norwegian Sea. A 93% gas ratio, from 3 non-operated fields, Ormen Lange (14%), Alve (15%) and Marulk (30%). The business also holds 22 offshore licenses, of which 6 are operated, and has equity in the Nyhamna Terminal (8%).

The deal announced today continues to rebalance our portfolio in terms of oil and gas and moves INEOS Energy towards a more operated position.

The sale, which has an effective date of 1 January 2021, is subject to approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance. It is expected to complete later this year.

All 52 employees of INEOS E&P Norge AS will transfer to PGNiG Upstream Norway AS following completion of the deal.

The PGNiG Group is the largest Polish oil and gas company employing 25,000 people worldwide. PGNiG Upstream Norway AS is an integrated exploration and production company established in Norway in 2007 and plays an important role in the supply of gas to Poland.

Brian Gilvary, Executive Chairman of INEOS Energy said, “This represents another positive step in the INEOS Energy journey.  The deal allows us to monetise a non-operated, predominantly gas portfolio at an attractive price compared to our hold value.  This will further balance our portfolio of oil and gas and open up new opportunities to reinvest further into the energy transition.  These assets are a very strong strategic fit for PGNiG and significantly extends their position in Norway."

Today’s deal quickly follows the announcement of the acquisition of the HESS business in Denmark, which consists of operated assets. These deals begin reshaping INEOS Energy as it progresses a strategy to position the businesses strongly in the coming energy transition. 

ExxonMobil to sell U.K. upstream central and northern North Sea assets

ExxonMobil has signed an agreement with HitecVision, through its wholly owned portfolio company NEO Energy, for the sale of most of ExxonMobil’s non-operated upstream assets in the United Kingdom central and northern North Sea. The sale price of more than $1 billion is subject to closing adjustments, and has additional upside of approximately $300 million in contingent payments based on potential for increase in commodity prices.



Sale price of more than $1 billion advances divestment plans, further focusing portfolio on advantaged assets

ExxonMobil retains extensive refining and fuels marketing, lubricants, petrochemicals production and natural gas marketing business in the U.K.

“We continue to high-grade our portfolio by divesting assets that are less strategic and focusing our investments on our advantaged projects that are among the best in the industry,” said Neil Chapman, senior vice president of ExxonMobil. “Our development plans that prioritize Guyana, the U.S. Permian Basin, Brazil and LNG are focused on increasing earnings potential and generating strong cash flow to fund future capital investments, reduce debt and maintain a reliable dividend.”



The agreement includes ownership interests in 14 producing fields operated primarily by Shell, including Penguins, Starling, Fram, the Gannet Cluster and Shearwater; Elgin Franklin fields operated by Total; and interests in the associated infrastructure. ExxonMobil’s share of production from these fields was approximately 38,000 oil-equivalent barrels per day in 2019.



ExxonMobil will retain its non-operated share in upstream assets in the southern North Sea, and its share in the Shell Esso gas and liquids (SEGAL) infrastructure that supplies ethane to the company’s Fife ethylene plant.



The transaction is expected to close by the middle of 2021, subject to regulatory and third-party approvals.



ExxonMobil has operated in the U.K. for more than 135 years and continues natural gas sales, refining and chemical operations, the marketing of lubricants and petrochemicals, and the marketing of fuels through a network of more than 1,300 independently owned Esso-branded retail sites.

https://corporate.exxonmobil.com/News/Newsroom/News-releases/2021/0224_ExxonMobil-to-sell-UK-Upstream-Central-and-Northern-North-Sea-assets