TotalEnergies sells Norwegian oil assets Vaar Energi to reduce debt
TotalEnergies announced on Wednesday that it had agreed to divest its interests in mature oil fields offshore Norway. This is the latest step in an overall divestment plan aimed at reducing debt.
French oil major announced that the transaction should close by the end of the fourth quarter this year.
In order to reduce the company's leverage, it is focusing on assets that are more profitable.
Patrick Pouyanne, the group's CEO, mentioned "a small sale in Norway of an asset that is mature" during TotalEnergies investor day held on Monday.
Pouyanne stated that the group planned to raise $3.5 Billion through divestitures before the end of this year in order to offset the more than $3 Billion in acquisitions which have resulted in a more-than-doubling of TotalEnergies debt in the first half of 2025.
Vaar Energi, a Norwegian company, will acquire the asset and increase its stake in Ekofisk redevelopment to 52.3%. Vaar announced this in a press release.
Vaar stated that the project would prolong the life of Ekofisk, resulting in a significant increase in the recoverable resources.
The report said that the transaction would add an estimated net proved plus probable reserve of 38 million barrels equivalent to oil with low operating costs and potential for growth. Reporting by Sudip Kacher in Paris, Alban Kach in Gdansk, and Terje Solsvik, in Oslo. Editing by Muralikumar A. Anantharaman and Thomas Derpinghaus.
(source: Reuters)
