US Oil Giant Considers Leaving Norway
Source: iStock.com/arild lilleboe
The company launched the Norwegian oil adventure in 1969. If it sells its assets, it will mark the final chapter for the original US oil companies on the Norwegian continental shelf.
“When projects become smaller, it is no longer viable to have the largest players present.”
That is the view of Petter Osmundsen, a professor of petroleum economics at the University of Stavanger (UiS).
He believes major foreign companies are overlooking Norway because, at present, there are insufficient opportunities to extract large volumes of oil and gas.
“The biggest players will return once more acreage is opened up for exploration,” he says.
ConocoPhillips (formerly Phillips Petroleum) was among the first international oil companies in Norway. It participated in the licensing round for the Norwegian continental shelf in 1965.
ConocoPhillips has now informed employees, partners, and authorities that the company is considering a possible sale of its Norwegian operations.
If it sells out, it will mark the end of the original US companies’ presence on the Norwegian continental shelf.
Interest among foreign companies in the Norwegian continental shelf has been declining for several years:
- ExxonMobil sold off all its assets on the Norwegian continental shelf in 2019.
- In recent years, Shell has divested several of its key assets on the shelf.
- Chevron and BP have previously implemented major changes, moving away from their original ownership stakes on the Norwegian continental shelf.
Considering an Offer
Communications Director Elisabeth Fiveland states that the company is considering withdrawing because it has received an offer. “This assessment aligns with the company’s strategy to optimize and further develop its portfolio,” she writes in a press release.
If the offer is not satisfactory, ConocoPhillips will remain in Norway, she adds.
In 2024, the company produced around 128,000 barrels of oil equivalent per day in Norway.
Deeply Concerned
Member of Parliament Kristoffer Sivertsen is unhappy with this development.
“I am deeply concerned that foreign companies are leaving the continental shelf and that our competitiveness will decline,” he says.
Sivertsen believes it would be unfortunate if the company were to leave Norway.
“The Progress Party wants more companies and increased competition on the continental shelf,” he says.
ConocoPhillips discovered the Ekofisk field in 1969. It is one of the most productive and valuable fields in Norway’s history.
The company has its Norwegian headquarters in Tananger, in the municipality of Sola, and employs around 1,600 people.
It operates the Ekofisk, Eldfisk, Embla, Tommeliten A, and Tor fields in the Ekofisk area.
The company also holds stakes in a number of other fields.
A Potential Sale Not Necessarily Negative
Eirik Birkeland is the leader of the Ekofisk Committee trade union. He says the news was announced at an all-staff meeting on Thursday morning.
“Our main priority is looking after our members. I am confident we will receive the necessary support from our national union and the Norwegian Confederation of Trade Unions (LO) if a sale goes ahead.”
Asked whether the news will create a great deal of uncertainty among employees, he says: “People’s perspectives will vary somewhat. Most will likely view it positively that the company is open about the fact that a process is underway.”
Frode Alfheim, leader of the Styrke union, says its task now is to support the members. He believes a potential sale is not necessarily bad news.
“It means the areas ConocoPhillips is currently working in are seen as attractive. If they weren’t attractive, this process wouldn’t be happening,” says Alfheim.
Alexander Winther is a union representative for Lederne at ConocoPhillips. He says that union representatives are being kept continuously updated on the process.
“It’s hard to predict what will happen, but people are very open-minded,” he says.
“I haven’t received any negative feedback so far,” he adds.
Believes Vår Energi Wants to Buy
SB1 Markets analyst Teodor Sveen Nilsen is not surprised.
“The number of operators on the Norwegian continental shelf has more than halved over the last ten years. I believe that figure will drop further.”
He specifically points to Vår Energi as a potential buyer.
“They have been the most active on the acquisition front recently. I wouldn’t rule out Aker BP and DNO, either,” he says.
Source: NRK (in Norwegian)