Mirai Life Securities researchers noted that the American multinational oil and gas corporation Exxon Mobil is considering a move that would result in a sale of its oil and gas assets off the Norwegian coast.
Companies such as Okea, and independent oil companies have commented through the year stating its interest in purchasing more assets in Norway. Analysts from Mirai Life Securities suggest that the total value could be worth anything between $3 to $4 billion U.S. Dollars.
“Traders and market spectators are leaning towards a potential deal that could be reached as early as next month, and there is a significant number of private equity companies alongside big corporate companies stating there desire in the fields already” Commented Adam Walker, Head of Corporate Trading at Mirai Life Securities.
According to Exxon Mobil’s corporate website, net production that was recorded from its fields off the Norwegian coastline highlights around 170,000 barrels of oil per day in 2017.
Reuters noted that Exxon Mobil has not yet made a final deal on the potential sell-off which a spokesperson commented, “Following interest expressed by several parties, Exxon Mobil has decided to open a data room to test the market interest for the upstream portfolio in Norway”.
“Many believe other companies will follow suit as the mature sections from the North Sea, where some production started in the late 1950s have seemed to dried up with more focus leaning on other more profitable areas.” Commented Ralph Haranobu, Head of Research & Analysis at Mirai Life Securities.
Exxon Mobil already sold its previous assets within the same area only two years ago, to counter the sales it had to increase its position in over 20 other fields including those operated by Shell and Equinor.
Source: Mirai Life Securities researchers
Date: Jun 24, 2019