MOL to buy Ithaca Petroleum Norge for $60 mln
Hungarian oil and gas company MOL today said it had agreed with Ithaca Petroleum Ltd. to buy its subsidiary in Norway Ithaca Petroleum Norge for an initial offer of $60 mln, Hungarian news agency MTI reported. The firm could also receive up to $30 mln from MOL as an additional bonus payment dependent on the exploration success of the existing license portfolio.
MOL will finance the deal from its operating cash flow, MOL said. The deal fits MOLʼs strategy to increase its exploration and development activities, the company added. IPNʼs portfolio includes 14 licenses in the Norwegian continental shelf, out of which three are operated by IPN.
The licenses provide an oil weighted exploration portfolio with net unrisked best estimate prospective resources of more than the equivalent of 600 million barrels of oil.
Having now entered Norway, MOL plans to further expand its portfolio there by adding additional assets and licenses to IPN. MOL ultimately targets becoming "a well reputed offshore operator in the region," it said.
MOL also said there is potential for synergy with its existing North Sea operations in the UK, it added.
The completion of the transaction is subject to the approval of the Norwegian Ministry of Petroleum and Energy.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.