E.ON sells Norwegian oil and gas assets

DEA Deutsche Erdoel has acquired 100% of the shares of E.ON’s Norwegian oil and gas business to create an enlarged Norwegian portfolio more than doubling its current production in Norway to 75,000 boe/d. The acquisition also provides access to promising growth options through material development and exploration. The value of the transaction is $1.6bn, including $100mn of cash on the balance sheet as at the effective date of 1 January 2015. The transaction is subject to approval by Norwegian authorities and the European Commission. The deal comprises equity interests in 43 licences, and adds production of some 45,000 boe/d through working interests in three producing oil and gas fields, namely Skarv (28.1%), Njord (30%) and Hyme (17.5%).  DEA will also acquire interests in additional developments and discoveries, including Snilehorn, Snadd and Fogelberg, as well as a broad portfolio of exploration licences on the Norwegian Continental Shelf.