Faroe Petroleum plans asset swap to lift production

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Equinor, the Norwegian oil major formerly known as Statoil, is planning to swap assets with Faroe in the North Sea Equinor, the Norwegian oil major formerly known as Statoil, is planning to swap assets with Faroe in the North Seanerijus adomatis/Reuters

Equinor and Faroe Petroleum have agreed a deal to swap stakes in several Norwegian North Sea oil and gasfields, adding up to 8,000 barrels per day of production for Faroe but provoking thinly disguised scepticism from its would-be buyer.

DNO, the Norwegian oil company that is Faroe’s biggest shareholder, launched a hostile £600 million takeover bid for the Aberdeen-based producer last month.

Yesterday it said that it would take time to assess the merits of the transaction, but questioned if Faroe was making the right call. “We need to ask if this is good value for a company seeking growth,” DNO said.

Faroe, which was founded in 1997 and listed on the junior Aim exchange in 2003, is focused on Norway but also has interests…

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  • Europe
  • Energy
  • Middle East