Healthier global economy should push demand for oil to record high: Jadwa
Vaar Energi, Norway’s third-largest oil producer, plans to list on the Oslo stock exchange and raise capital through two private placements.
The initial public offering could, depending on its size and market value, be the largest oil and gas listing since Aramco raised $25.6 billion at a $1.7 trillion valuation. when it went public in 2019, according to the Financial Times, citing data provider Dealogic.
The company, which is valued between $10 billion and $15 billion, had an average production of 247,000 barrels per day during the third quarter.
The group, which is around 70% owned by Eni and the rest by HitecVision, is seeking institutional investors, but Eni intends to remain the majority shareholder after listing. DNB, JPMorgan, Morgan Stanley and SpareBank 1 are acting as joint global coordinators for the IPO.
“We believe that oil and gas will continue to be part of the energy mix for decades to come. Current gas market developments in Europe confirm our view that a reliable and secure supply of natural gas from Norway will be crucial,” said CEO Torger Roed.
Norway is the leading hydrocarbon producer in Western Europe. The company views the Norwegian Continental Shelf as one of the most attractive regions for exploration and production globally, thanks to cost-competitive and stable regulatory environments, as well as low emissions.
Still, recent IPOs have run into hurdles, with investors insisting on sustainability. Vaar Energi wants to achieve zero carbon emissions in its own production by 2030. It is also looking to increase production to 350,000 bpd by 2025.