Wednesday 14 October 2015

DEA Deutsche Erdoel AG acquires 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 barrels of oil equivalent per day (boe/d). This acquisition also provides access to promising growth options through material development and exploration. The value of the transaction is US$1.6 billion, including US$100 million of cash on the balance sheet as at the effective date of January 1st 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 circa 45,000 boe/d through working interests in three producing oil and gas fields, namely Skarv (28.1%), Njord (30%) and Hyme (17.5%). The portfolio is well balanced in terms of oil and gas composition and has a full-cycle asset base. 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.

Commenting on the transaction, Lord Browne, Chairman of the Supervisory Board of DEA Deutsche Erdoel AG, said, "This acquisition is the first step in DEA's new growth strategy. DEA has access to substantial financial resources, and I expect the company to make further investments in the Norwegian Continental Shelf, as well as in its other core areas".

"This acquisition in Norway is a perfect fit to our renewed business strategy," said Thomas Rappuhn, CEO of DEA Deutsche Erdoel AG. "It will grow our reserves, significantly increase our production and add growth optionality to our portfolio. "In addition, we continue to work on further growth in Europe and North Africa by progressing development projects in our portfolio, as well as by pursuing M&A opportunities in these regions." Rappuhn commented.

DEA has been present in Norway for over 40 years through its subsidiary DEA Norge AS. DEA Norge currently holds 31 licences, including working interests in a number of producing fields such as Snorre, Gjøa, Knarr, Snøhvit and Veslefrikk. DEA Norge is operator in several exploration licences and of the Zidane field, which is currently being considered for development. The upstream company is a partner in the promising Alta discovery.

According to Managing Director of DEA Norge Hugo Sandal, the new assets are an excellent enlargement of DEA's operations. "The acquisition of E.ON E&P Norway, and further growth plans will open exciting perspectives and great opportunities for our current and new colleagues. We are trusted with the management of high quality production, development and exploration assets which we are looking to perform through safe and sustainable operations."

Press Release