LetterOne Clinches Deal for E.ON’s Assets in Norway

DEA Deutsche Erdoel (DEA), a company based in Germany controlled by Russian billionaire Mikhail Fridman’s investment firm LetterOne, signed an agreement to buy 100% of E.ON’s shares in E.ON E&P Norge for $1.6 billion, explaining that the transaction will allow DEA doubling its current production in Norway.

‘The transaction is subject to approval by Norwegian authorities and the European Commission’ reads the note released on Wednesday, confirming rumours emerged last week. 

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%).

E.ON placed its North Sea E&P business under strategic review in November 2014. Its E.ON’s UK E&P business remains on sale.

“The successful sale of our E&P business in Norway is a landmark transaction in the sector; as an important step in our overall financial framework it provides flexibility to implement our strategy and reposition the Group” E.ON CFO Michael Sen said in a separate communiqué. 

Also on Wednesday, Det norske oljeselskap has entered into an agreement to acquire Svenska Petroleum Exploration AS for a cash consideration of USD 75million on a cash free, debt free basis. 

‘Svenska holds 13 licenses in Norway, including the Krafla/Askja (25%), Garantiana (20%), Frigg Gamma Delta (40%) and Fulla/Lille-Frigg (25%) discoveries in the North Sea. In addition, the company holds four exploration licenses in the Norwegian Sea’ Det norske oljeselskap wrote on Wednesday.