Russian Completes $1.6 Billion Norway Acquisition

Published at 02:52PM - 14/10/15

Russian billionaire, Mikhail Fridman, has completed his acquisition of all offshore assets in EON Norway’s oil and gas exploration and production portfolio.

Fridman made the purchase through DEA, a company owned through the oil and gas arm of his LetterOne investment company.

Offshore Acquisition

The purchase will give DEA equity in 43 Norwegian oil and gas licenses, and woking interests in three Norwegian offshore fields, the Njord Field (30%); Skary Field (28.1%); and Hyme Field (17.5%).

The move will generate DEA additional Norwegian production of 45,000 barrels of oil equivalent per day, moving their total to 75,000 barrels.

Former BP Chairman, Lord Browne, was appointed to two top positions in both LetterOne and DEA earlier this year in quick succession.

Rumours initially placed Lord Browne in the position of Executive Chairman around 23rd February 2015, although he nor Fridman ever commented at the time. 

The Following week, 3rd March 2015, Lord Browne had been given a further post of Chairman of the DEA Supervisory Board by Fridman.

Speaking on the purchase, Lord Browne said: “This acquisition is the first step in DEA’s new growth strategy. DEA has access to substantial financial resources, and I expect the company to make further investments in the Norwegian Continental Shelf, as well as in its other core areas”.

British Offshore Sale

Earlier this year the British government forced Fridman and his companies to sell their UK offshore oil and gas assets.

The move was in fear of escalating sanctions brought on by Russia’s aggression over Ukraine, being imposed on further Russian businessman and their assets.

The fear was that DEA, through LetterOne held around 8% of the total UK gas production through its offshore gas fields, enough to power around one in ten UK homes.

The sale of all British oil and gas assets was confirmed this weeks to UK – Swiss firm INEOS.