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Det norske Sees More Norway Assets for Sale

Posted by August 31, 2016

Norwegian oil firm Det norske's CEO made the following statements to Reuters on the sidelines of an oil industry conference on Wednesday:

* On Norwegian M&A market: "There are more assets on the market, more buyers looking for possible deals. We see that the ownership structure of these actors in that market has changed a bit"

* "To be honest I think it should give some reason to pause, as we now see more financial actors and less industrial actors"

* Confirms first oil from Ivar Aasen field is expected in December 2016

* Earlier on Wednesday, the firm announced a new oil discovery in the Northern Alvheim area together with partner Lotos

* Says "very likely" that the Northern Alvheim area will be developed

* Says aims for concept selection for Northern Alvheim area mid-to-early next year, final investment decision a year later. He declined to say what concept was most likely

* Earlier, during an investor presentation, Hersvik made following comments:

* Says the firm's goal is now to be able to sanction new stand-alone projects at break-even price of $35 per barrel

* "The goal... we are really probably talking more like $35 but the goal is probably closer to $35 per barrel than $40 per barrel"

* The firm, controlled by Norwegian billionaire Kjell Inge Roekke's Aker and which is soon to merge with BP's Norwegian business, had previously set a goal of cutting costs to a level where the firm would be able to approve new stand-alone developments at $40 oil price

* "I believe that today we have a world-class asset base with further upside, significant further upside"

* Says sees that the nature of potential buyers on the Norwegian continental shelf is changing: "There seems to be more private equity-backed companies, more interest around financial engineering than on profound industry architecture there seems to be a lot of discussion about how to put up portfolios."


Reporting by Stine Jacobsen

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