Vaar Energy AS, to be formed by the merger of Eni Norge AS and Point Resources AS, will spend $8 billion during the next 5 years to raise production offshore Norway to 250,000 boe/d of oil and natural gas from the companies’ combined output of 180,000 boe/d, according to a press release.
Parent companies Eni and private investment firm HitecVision, Stavanger, have agreed to the merger, which remains subject to regulatory approvals and consultations with employees and labor unions.
The production increase will result from development of 10 fields with combined reserves of 500 million boe of oil and gas.
Vaar Energy will be owned 69.6% by Eni and 30.4% by HitecVision.
Kristin F. Kragseth, vice-president production of Point Resources, will be chief executive officer of the new company. Philip D. Hemmens, Eni Norge managing director, will be chairman of the board.
HitecVision formed Point Resources in 2016 by merging portfolio companies Pure Exploration & Production, Core Energy, and Spike Exploration. The company last December acquired production operated by ExxonMobil Exploration & Production Norway.
