E.ON has sold its Norwegian exploration and production (E&P) business to Germany’s DEA Deutsche Erdoel (DEA) for $1.6bn, and a sale of its UK E&P business could follow.
The energy producer said it sold its 100% interest in E.ON E&P Norge in order to give the group the “flexibility” to reposition itself and its finances.
The Norwegian business unit holds E.ON’s oil and gas North Sea upstream business in Norway, which comprises equity interests in 43 licenses and a 28% and a 30% interest in the respective Skarv and Njord offshore oilfields.
E.ON’s North Sea E&P business has been under strategic review since November 2014, which resulted in the sale. The future of its UK E&P unit is still being assessed.
“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,” said Michael Sen, E.ON’s CFO, in a statement.
“The outcome demonstrates that E.ON E&P is a high performing business with a strong asset base and superbly professional employees. DEA has a long history in Norway, and I am convinced that they will continue to build on this success story in the future.”