Italian energy company Eni has signed an agreement to merge its subsidiary Eni Norge with HitecVision’s Norwegian exploration and production firm Point Resources to create Vår Energi.

The combined company will be 69.6% owned by Eni, while the remaining 30.4% stake will be held by HitecVision. It will comprise a portfolio of assets across various geographies, including the Barents Sea and the North Sea.

Altogether, 17 oil and gas fields in the portfolio are estimated to generate approximately 180,000 barrels of oil equivalent per day (boepd) this year.

Vår Energi is set to possess more than 1,250 million barrels of oil equivalent (Mboe) in reserves and resources, with its production anticipated to achieve 250,000boepd by 2023 following the development of more than 500 Mboe in ten current assets.

Over the next five years, the company will invest more than Nkr65bn ($8bn) in order to support the transition of these projects on stream, revive older fields and explore new resources.

“The high quality of the human capital will create a significant upside value to the shareholders of the merged company.”

Eni CEO Claudio Descalzi said: “This is a fundamental step ahead in our strategy to reinforce Eni’s presence in OECD countries with further upstream potential, such as Norway.

“The high quality of the human capital, as well as of the assets in the portfolio, together with the expansion opportunities still available in Norway, will create a significant upside value to the shareholders of the merged company.”

Vår Energi will employ nearly 800 offshore and onshore staff, with a focus on Health and Safety Executive (HSE) performance, projects delivery and production efficiency.
Subject to customary closing conditions and regulatory approvals, the merger is scheduled for completion by the end of this year.