In February 2012, Tullow prequalified as an oil and gas operator offshore Norway. In December 2012, the Group announced the planned acquisition of Spring Energy Norway AS, a Norwegian exploration company, for $372.3 million. The deal, which was completed in January 2013, provided Tullow with access to 28 offshore licences across Norway’s continental shelf in the North, Norwegian and Barents Seas covering over 18,000 sq km.
Divestment of Norwegian assets
The divestment of the Norway business is progressing well with two deals completed before year-end and one in January 2017. Four licences, including the Wisting oil discovery, have been sold to Statoil, eight licences, including the Oda asset, have been sold to Aker BP ASA and two further licences have been sold to ConocoPhillips. A further two sales were executed in December 2016 with two separate parties. These sales, covering a further 13 licences, and which include the 2016 Cara oil and gas discovery, are expected to complete by April 2017. In aggregate, the Norway asset sales are expected to yield proceeds of up to $0.2 billion. Once completed, the Group will no longer hold any licences on the Norwegian Continental Shelf.