Marathon sells Norway interests to Det Norske
Det norske oljeselskap has agreed to acquire Marathon Oil Norge for $2.1 billion.
TRONDHEIM, Norway – Det norske oljeselskap has agreed to acquire Marathon Oil Norge for $2.1 billion.
The transaction is based on a gross asset value of $2.7 billion, and is adjusted for debt, net working capital and interest on the net purchase price.
Marathon Norway’s assets are all in theNorwegian North Sea and produce through the Alvheim FPSO. Oil comprises 80% of the reserves. Additionally, Det Norske has identified further upside of 80 MMboe in Marathon’s 13 Norwegian licenses, 10 of which it operates.
Last year Marathon’s net Norwegian production was around 80,000 boe/d. Combined 2013 production for the two companies would near 84,000 boe/d, making Det norske one of the largest listed independent E&P companies in Europe in terms of output.
After the acquisition Det norske will have more than 450 employees.
CEO Karl Johnny Hersvik said: “Marathon Norway is an excellent fit for Det norske, given the operational expertise, access to cash flow, and the production profile it brings. The acquisition is important when it comes to meeting our funding requirements forIvar Aasen and Johan Sverdrup [in the central Norwegian North Sea], and to reducing Det norske’s overall risk profile.”