Eni Norge and Point Resources Merge to become Vår Energi AS
Italy based energy company Eni and leading private equity investor HitecVision are pleased to announce an agreement to merge Point Resources AS into Eni Norge AS, and renaming the company Vår Energi AS. The combined entity will be a leading independent Norwegian E&P company, built on the existing organizations and leveraging on complementary strengths.
The portfolio of the combined company will have a wide geographical coverage, from the Barents Sea to the North Sea, producing around 180,000 boed this year from a portfolio of 17 producing oil and gas fields. The company will have reserves and resources of more than 1,250 MMboe.
Production is expected to reach 250,000 boed by 2023 after developing more than 500 MMboe in 10 existing assets, with a breakeven price of less than $30/bbl. In total, the company plans to invest more than NOK 65 billion ($8 billion) over the next five years to bring these projects on stream, revitalize older fields and explore for new resources. The extended presence in the Norwegian waters will allow the company also to expand further its portfolio through both future exploration bid rounds and M&A transactions.
The new company will have a total of about 800 employees, including both offshore and onshore staff. HSE performance, projects delivery and production efficiency will be priority areas for the management. Kristin F. Kragseth, currently V.P. of production of Point Resources AS, will become CEO of the combined entity, while Philip D. Hemmens will be the chairman of the board. Both Hemmens and Mauritzen will remain in their respective positions until completion of the merger.
Vår Energi AS will be jointly owned by Eni (69.6%) and by HitecVision (30.4%). The shareholders have agreed the key strategy and objective of the company. The combination has been agreed between the owners of the two companies, and the ordinary consultations with employees and unions will now be initiated, as will an integration project with broad participation from both organizations. The combination is subject to customary closing conditions and regulatory approvals and is expected to be completed by the end of 2018.
Source: www.worldoil.com
