Exxon Looking For Buyers For Its Norwegian Offshore Assets
After selling off its biggest assets on the Norwegian continental shelf more than two years ago, Exxon Mobil has announced that it is considering the possibility of selling its remaining stakes in the region. A company spokesperson mentioned this week that Exxon has already received interest from several parties for its remaining stakes.
The world's largest oil company still owns vital assets in more than 20 fields in the region, including the Shell-operated Ormen Lange and the Equinor-operated Snorre fields. Exxon announced that it will be opening a data room to test the market for its portfolio in Norway. The company stated that it has yet to decide on an actual deal and that it still wants to see all of the offers for its various assets.
Based on previous announcements from major oil firms, potential buyers for Exxon's Norwegian assets may include Okea, Aker BP, and DNO. All three companies previously stated their intentions of purchasing more assets in Norway. Meanwhile, reports have revealed that a number of private-equity backed companies may also be in the market for large asset acquisitions in the region.
Exxon representatives had confirmed previous reports of the company's intention to unload some of their Norwegian assets. The company had declined to comment on how much they plan to sell the assets, but market experts estimate that Exxon's Norwegian offshore assets could be worth as much as $3 or $4 billion.
The figure is based on the total production of the assets, which were revealed to be somewhere around 170,000 barrels per day in 2017. There is currently no data on the production of the facilities for 2018, which means that the estimated value could be much less than the actual amount Exxon is asking for the offshore assets.
Major oil companies have already started their exodus from the Norwegian continental shelf given that mature sections from the North Sea have already started to dry up. Oil production in the region has started in the late 1950s and some believe that most of the more profitable areas may have already gone dry.
Okea's CEO, Erik Haugane, previously stated that he thinks all major oil company could disappear from the region in less than a decade, leaving smaller operations to extract what is left. Chevron already transferred its Norwegian offshore license last year. BP sold its Norwegian assets to Norwegian oil firm Det norske in 2016. Meanwhile, ConocoPhillips still operates its Ekofisk oil field, which is one of the most important oil fields in the North Sea.