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October 12, 2018

Last exploration licence sale prompts Chevron’s Norway retreat

US oil major Chevron is set to sell its remaining interest in an exploration licence on the Norwegian continental shelf (NCS) to Oslo-based oil and gas company DNO.

US oil major Chevron is set to sell its remaining interest in an exploration licence on the Norwegian continental shelf (NCS) to Oslo-based oil and gas company DNO.

This will mark the company’s exit from the mature NCS region as it looks to shift focus to growth opportunities elsewhere, including US onshore shale assets and the Tengiz field in Kazakhstan.

Chevron has reached an agreement to sell its 20% stake in the PL859 exploration licence to DNO, according to Reuters, which cited a letter from the Norwegian oil and energy ministry to Chevron.

Oil and gas publication Upstream first broke the story on the aforementioned letter.

In 2014, the company divested its 7.56% stake in Draugen oilfield offshore Norway to Austria’s VNG in 2014.

An unnamed spokeswoman for Chevron told Reuters: “The transaction is subject to certain conditions and approvals, and is expected to take a number of months to close.”

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The transaction is subject to certain conditions and approvals, and is expected to take a number of months to close.

Equinor, the operator of the licence, made a non-commercial gas discovery last year and plans to drill a second well next year.

"The transfer of the stake is subject to Chevron making commitment to cover its share of decommissioning costs at Draugen."

If completed, the company will become the first oil major to leave Norway entirely.

Previously, Exxon Mobil, BP and Shell scaled down their presence in the country by either selling or merging their assets in the NCS.

Furthermore, Chevron is seeking to pursue the sale of its UK offshore assets.

Earlier this month, Equinor agreed to acquire Chevron’s 40% interest in the Rosebank field off the Shetland Islands.

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