Point Resources closes ExxonMobil acquisition; targets increased oil recovery in Norway’s first license
Point Resources AS has closed its acquisition of the ExxonMobil-operated Balder, Ringhorne, Ringhorne East, Jotun and Forseti fields on the Norwegian Continental Shelf (NCS). The agreement includes offshore installations and ExxonMobil’s offices at Forus. More than 300 ExxonMobil employees have transferred to Point Resources as part of the transaction.
Following completion of a comprehensive handover program and receipt of all regulatory approvals, the transition was concluded on 1 November 2017. From this date, Point Resources is the new operator of the fields.
With this new asset base, Point Resources will increase its net production tenfold to approximately 50,000 barrels of oil equivalent per day (boepd), making the company both a mid-sized Norwegian exploration and production (E&P) company and a significant player on the NCS. By 2022, the company is expected to organically grow its production to over 80,000 boepd.
“It is quite remarkable that 52 years after production license number one (PL 001) was awarded to ExxonMobil in 1965, with the first Norwegian oil discovery two years later, we still recognize further potential in the area. We are planning to extend the field life of Balder and Ringhorne, carry out new seismic surveys, and initiate new drilling campaigns to increase oil recovery. Good reasons for optimism,” said Morten Mauritzen, who leaves his position as Lead Country Manager for ExxonMobil’s affiliates in Norway to become the new chief executive officer (CEO) of Point Resources from 1 November.
At the same time, previous CEO, Jan Harald Solstad, returns to Point Resources’ owner HitecVision as senior partner. “After finalizing the acquisition of ExxonMobil’s operated fields and transfer of operatorship, we have created a new significant Norwegian E&P company, with plans to invest more than 20 billion NOK on the NCS over the next five years. The combined company will build on ExxonMobil Norway’s operating organisation, Point Resources’ exploration track record, and HitecVision’s financial strength and M&A background. This will create a platform for further growth, and add value to our shareholders and the Norwegian society at large,” Jan Harald Solstad points out.
Mauritzen, with over 35 years of experience at ExxonMobil, looks forward to further developing the company and building a new work environment. “An exciting future lies ahead of us. I will enjoy meeting new challenges together with dedicated and competent staff. New activity planned in Norway’s oldest license area is a symbol of the possibilities still present on the Norwegian shelf. PL 001 is far from an industry sunset,” Mauritzen said.