Speaking after experiences that ExxonMobil is getting ready to place its Norwegian upstream portfolio up on the market, Neivan Boroujerdi, principal analyst, Europe upstream, at Wood Mackenzie, stated: “The transfer doesn’t come as a shock. We not too long ago highlighted Norway amongst a US$48 billion pool of belongings from which we expect ExxonMobil may meet its not too long ago introduced US$15 billion divestment goal.”
He added: “The sale has the potential to be the Norway’s greatest since Statoil’s merger with Norsk Hydro introduced in 2006.
“While Norway is now not core to the general enterprise, ExxonMobil’s place is substantial sufficient to obtain a lovely exit value, notably as Norway stays one of many premium M&A markets on the planet.
“It’s a extremely money generative enterprise with low working prices, producing 150,000 boed. The portfolio is predominantly operated by Equinor, which has laid out its personal plans for elevated oil restoration within the coming years – so it’ll include future funding alternatives.
“In phrases of patrons, the brand new wave of North Sea independents are more likely to be the entrance runners. Although the oil-heavy portfolio may deter some patrons seeking to appease the investor neighborhood earlier than an IPO within the coming years.”
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