Private equity-backed Norwegian energy company Sval Energi is nearing an agreement to acquire Spirit Energy’s oil and gas operations in the country for around $400 million, industry and banking sources said.
Sval, which is owned by private equity firm HitecVision, has stakes in several oil and gas exploration licences in the Norwegian North Sea and holds 15.6% in the Gassled joint-venture that owns the bulk of Norway’s offshore gas transportation system.
The company aims to grow its oil and gas output to 100,000 barrels of oil equivalent per day (boepd) by the summer of 2022, according to a company presentation slide seen by Reuters.
Spirit Energy is owned by British energy utility Centrica, which holds a 69% stake in the company, and Bayerngas GmbH and Munichs municipal utilities company Stadtwerke München, which own the remaining stake.
The companies have been trying to sell Spirit Energy, which produces oil and gas in the British, Norwegian and Dutch North Sea, for several years with no success.
Earlier this year they decided to try to market the Norwegian assets, which are seen as more attractive, separately.
Sval’s Chief Executive Nikolai Lyngoe declined to comment on the deal, saying in an email to Reuters: “We never comment on rumours or speculations on such matters.”
Centrica and Stadtwerke München also declined to comment, while Bayerngas did not immediately reply to requests for comment.
Spirit Energy’s output in Norway in 2020 stood at 52,732 barrels of oil equivalent per day (boepd), according to the Norwegian authorities.
The company employed 126 workers and generated a revenue of 255 million pounds ($344.30 million) in the country last year, according to its annual report.
Source: Reuters.com