Det norske Sees More Norway Assets for Sale
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