Corporate M&A

Sval Energi Acquires Edison's Norwegian E&P Business

By Mahati K L
December 31, 2020
2 minutes read
Norway Flag Panorama

Private equity backed Norwegian E&P company Sval Energi AS has signed an agreement with Edison SpA to acquire its wholly-owned subsidiary, Edison Norge AS, for approximately US$300 million. According to a statement released by Sval Energi, a material share of the acquisition price relates to tax balances and tax losses. The deal has already been approved by Edison’s board of directors.

Edison Norge holds a 10% interest in the Dvalin gas development in the Norwegian Sea and a 15% interest in Nova oil field development in the North Sea. In addition, the Edison Norge also has interests in nine exploration licenses.

Dvalin is a subsea tie-back to the Heidrun oil field, and will export the gas through the Polarled pipeline, where Sval also holds an interest. Nova is a tie-back to the Gjøa field. The fields collectively have net estimated reserves (as of December 31st, 2019) of 25.9 million barrels of oil equivalent (MMboe), of which 57% is gas.

“This transaction almost completes Edison’s divestment plan of its hydrocarbon exploration and production activities in order to focus on sustainable development, in line with the country’s energy transition and national decarbonisation targets,” Edison said in a statement.

In October 2019, Energean Oil & Gas Plc had announced a US$600 million deal with Edison to acquire its upstream subsidiary, Edison Exploration & Production SpA (Edison E&P). The agreement was later amended to exclude Edison’s Norwegian and Algerian E&P subsidiaries from the transaction.

Stavanger-based Sval Energi (formerly Solveig Gas Norway AS) is backed by private equity firm HitecVision AS, and currently holds a portfolio of offshore exploration assets in the Norwegian North Sea and the Norwegian Sea, along with a 15.6% stake in Gassled, a partnership which owns the integrated gas transportation and processing system on the Norwegian continental shelf.

“Sval is a fast-moving growth business. This acquisition is another step in our clear ambition, demonstrating that we are determined to become a significant player on the Norwegian continental shelf. We are always on the lookout for profitable business opportunities,” said Nikolai Lyngø, Sval’s CEO.

The transaction is subject to customary closing conditions and approvals, and is expected to close in H1-2021.

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