Wintershall to sell assets on Norwegian Continental Shelf

3 October 2019 (Last Updated September 14th, 2020 09:45)

Oil and natural gas firm Wintershall Dea has agreed to sell its 5.0304% interest in the Nyhamna terminal, through its subsidiary Wintershall Norge, to CapeOmega.

Wintershall to sell assets on Norwegian Continental Shelf
Wintershall has signed an agreement to sell its infrastructure assets in Norway. Credit: Wintershall Dea/Thor Oliversen.

Oil and natural gas firm Wintershall Dea has agreed to sell its 5.0304% interest in the Nyhamna terminal, through its subsidiary Wintershall Norge, to CapeOmega.

The gas processing and storage facility was initially constructed to process gas from the Ormen Lange field. After processing, the Langeled pipeline will be used to transport gas to the central North Sea in the UK.

Wintershall Dea also signed an agreement to sell its 13.2550% interest in the Polarled pipeline on the Norwegian Continental Shelf (NCS) to Solveig Gas Norway. Completed in 2015, the Polarled pipeline delivers gas to the Nyhamna gas terminal since the fourth quarter of 2018.

The latest transaction on the NCS comes after the completion of the merger between Wintershall and DEA in May this year and is part of the company’s broader programme aimed at optimising its portfolio worldwide.

Wintershall Dea CEO Mario Mehren said: “The sale of these two assets is an important step in the direction of capturing value from active portfolio management.

“The transaction will allow us to streamline our business activities in Norway and focus our efforts on higher priority assets in our portfolio.”

Wintershall Dea holds interests in more than 100 licenses in Norway. According to the company, Norway accounted for 23.8% (140mboe/d) of the group’s aggregated production, which is 590mboe/d.

Wintershall Dea Norway managing director Alv Solheim said: “Norway will continue to play an important role in Wintershall Dea’s international portfolio in the coming years and this transaction is in line with our strategy of focusing on our upstream activities and ambition to capture future growth opportunities on the Norwegian Continental Shelf.”

Besides operating three Norwegian producing fields, the company is developing its own operated Dvalin and Nova fields. Wintershall Dea is also a partner in projects such as the Njord re-development, Ærfugl and the Snorre Expansion Project.

The deal is subject to approvals from the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance and is expected to close by the end of 2019.