Gulf Oil and Gas accountACCOUNT

Chevron Becomes First Oil Major to Exit Norway

Source: Reuters 10/10/2018, Location: Europe

Share |
U.S. oil firm Chevron (CVX.N) will become the first oil major to formally exit the Norwegian continental shelf (NCS) as it transfers its last stake in an exploration license, according to a government letter.

Oil majors, including Exxon Mobil (XOM.N), BP (BP.L) and Shell (RDSa.AS), have scaled down their presence in Norway by selling or merging their assets in the mature region to focus on new growth opportunities elsewhere.

Chevron is also seeking to sell assets in the British North Sea in order to focus on growing U.S. onshore shale production as well as the giant Tengiz field in Kazakhstan.

According to a letter from the Norwegian oil and energy ministry to Chevron dated Sept. 28. and obtained by Reuters, Chevron has agreed to transfer its 20-percent stake in an exploration license in the Arctic, called PL859, to Norway’s DNO (DNO.OL).

The decision means that “Chevron Norway shuts down its activities in Norway and leaves the NCS permanently”, the ministry wrote.

A spokeswoman for Chevron confirmed to Reuters that the company reached the deal with DNO in July but did not disclose its value.

“The transaction is subject to certain conditions and approvals, and is expected to take a number of months to close,” she said.

Oil industry trade paper Upstream was the first to report the existence of the letter.

The ministry said it has agreed on the transfer of the stake provided Chevron guarantees to cover its share of decommissioning costs at Draugen, an oilfield currently in production.

Chevron sold its 7.56 percent stake in the Draugen field to Austria’s VNG in 2014 for an undisclosed sum.

Norway’s Equinor (EQNR.OL), the PL859 operator, made a small, non-commercial gas discovery in 2017 but postponed plans to drill a second well permitted by the license until 2019.

BP no longer holds direct stakes in the Norwegian fields, but owns 30 percent of Norway’s Aker BP (AKERBP.OL), which operates a number of producing fields and exploration licenses.

Equinor said on Oct. 1 it had agreed to buy Chevron’s 40-percent stake in the Rosebank field off the Shetland Islands.

Acquisitions and Divestitures News in Norway >>

Egypt >>  11/12/2018 - The Chief Executive Officer of Petroleum & Petrochemicals, Mubadala Investment Company, and Chairman of Mubadala Petroleum, Musabbeh Al Kaabi, and the...
Nigeria >>  11/12/2018 - Eland Oil & Gas PLC, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, has announced, through...

United Arab Emirates >>  11/11/2018 - On behalf of the Abu Dhabi government, the Abu Dhabi National Oil Company (ADNOC) has signed an agreement with French oil and gas major Total, grantin...
Canada >>  11/8/2018 - the Canada Newfoundland and Labrador Offshore Petroleum Board announced that BHP has been successful in its bids to acquire a 100% participating inter...

Canada >>  11/7/2018 - Equinor and its partners were the successful bidders for new exploration parcels in the prolific Jeanne d’Arc basin, offshore Newfoundland. ...
Namibia >>  11/7/2018 - Tower Resources plc, the AIM listed oil and gas company with its focus on Africa, is pleased to announce that Tower Resources (Namibia) Limited, a who...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Norway Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 |

More News

 

Oil & Gas Companies in Norway >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.