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Solveig to drill into Capricorn Norge
Posted on Wednesday, 27 November 2019 15:31
Solveig Gas has signed on the dotted line to pick up Norwegian oil drilling firm Capricorn Norge from Cairn Energy.
Under the terms of the transaction, the buyer will pay USD 100.00 million for the business.
Completion remains subject to the green light from the Norwegian Ministry of Petroleum and Energy and the Ministry of Finance, as well as relevant partners and third parties.
Closing is expected to follow early next year.
Solveig chairman Gunnar Olsen said: “We are confident that the combined Solveig and Capricorn organisation, with its highly professional and competent staff, will properly manage the existing portfolio and continue our efforts to realise further growth possibilities in line with the company’s ambitions”
As a consequence of the purchase, the buyer’s production is expected to increase to the tune of around 6,000 barrels of oil equivalent per day once it commences in 2021.
Solveig added that it will also be able to operate exploration licences in Norway following completion.
Capricorn Norge has 50 employees and owns a 10.0 per cent share of the Nova oil field, where it intends to drill two exploration wells next year.
The most valuable deal targeting an oil and gas extraction company to have been announced worldwide during 2019 is worth USD 55.00 billion and involved Occidental Petroleum picking up Anadarko Petroleum back in August.
This was followed by a USD 10.00 billion capital increase, which saw Occidental carry out a private placing of stock to Berkshire Hathaway.
Only one other deal targeting the sector broke the USD 5.00 billion-barrier during the month as Hilcorp Alaska agreed to pick up BP’s Alaskan operations for USD 5.60 billion in August.
Completion of that transaction is slated to follow at some point during 2020.
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