Norwegian private equity-backed player Point Resources has completed its deal to buy ExxonMobil's operated stakes in the Balder, Ringhorne, Ringhorne East, Jotun and Forseti fields on the Norwegian Continental Shelf (NCS) and plans to invest US$2.45 billion over the next five years.
The deal with ExxonMobil increases Point Resources' net production tenfold, to about 50,000 boe/d, making the company both a mid-sized Norwegian exploration and production (E&P) company and a significant player on the NCS.
By 2022, the company says it expects to organically grow its production to over 80,000 boe/d, with life extension work, new seismic data acquisition, and drilling campaigns planned to increase recovery. This includes investing more than $2.45 billion (NOK20 billion) on the NCS over the next five years.
“It is quite remarkable that 52 years after production license number one (PL 001) was awarded to ExxonMobil in 1965, with the first Norwegian oil discovery two years later, we still recognize further potential in the area. We are planning to extend the field life of Balder and Ringhorne, carry out new seismic surveys, and initiate new drilling campaigns to increase oil recovery. Good reasons for optimism,” said Morten Mauritzen, who leaves his position as lead country manager for ExxonMobil’s affiliates in Norway to become the new CEO of Point Resources from 1 November.
The deal with Exxon included offshore installations and ExxonMobil’s offices at Forus. About 300 ExxonMobil employees have transferred to Point Resources as part of the deal.
Point's previous CEO, Jan Harald Solstad, will return to Point Resources’ owner HitecVision as senior partner.
“After finalizing the acquisition of ExxonMobil’s operated fields and transfer of operatorship, we have created a new significant Norwegian E&P company, with plans to invest more than NOK20 billion on the NCS over the next five years. The combined company will build on ExxonMobil Norway’s operating organization, Point Resources’ exploration track record, and HitecVision’s financial strength and M&A background. This will create a platform for further growth, and add value to our shareholders and the Norwegian society at large,” Jan Harald Solstad points out.
Mauritzen, with over 35 years of experience at ExxonMobil, looks forward to further developing the company and building a new work environment.
Point Resources was formed in 2016 from the merger of Core Energy, Spike Exploration and Pure E&P to create a new full cycle exploration and production company on the Norwegian Continental Shelf.
Point Resources will have about 400 employees with headquarters near Stavanger and a branch office in Oslo.
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