Vår Energi to acquire BlueNord in $1.3bn cash-and-stock deal

By: Shree Mishra Source: Offshore Technology

Vår Energi has agreed to acquire rival Norwegian oil and gas company BlueNord in a cash-and-stock deal valued at Nkr12.84bn ($1.33bn).

Both companies are listed on the Oslo Stock Exchange in Norway.

Transaction Overview

The deal, approved by the boards of both companies, is expected to create the largest independent oil and gas producer in Europe. The merger structure will see Vår Energi establish a new subsidiary that will merge with BlueNord.

Consideration for BlueNord Shareholders

• 248.4 million newly issued Vår Energi shares
• Nkr1.96bn in cash
• Equivalent to approximately 9.72 Vår Energi shares and Nkr76.83 in cash per BlueNord share

Post-Merger Ownership

• BlueNord shareholders: approximately 9.05% of the enlarged Vår Energi
• Existing Vår Energi shareholders: 90.95%
• Eni: approximately 57.33% majority position in the expanded company

Strategic Rationale

The merger will add BlueNord's Danish Continental Shelf (DCS) interests to Vår Energi's existing Norwegian Continental Shelf (NCS) and North Sea operations. BlueNord's portfolio includes producing assets in the Tyra, Halfdan, Dan, and Gorm hubs, which are part of the Danish Underground Consortium operated by TotalEnergies.

Nick Walker, CEO of Vår Energi, said:

"This transaction marks a significant milestone in Vår Energi's growth journey, creating the largest independent producer of oil and gas in Europe with a long-term production target of approximately 450,000 barrels per day and reinforcing our role as a reliable and secure supplier of energy to Europe. As Vår Energi continues to grow it is a natural evolution of our strategy to step outside of Norway, and Denmark offers a low-risk, stable operating and fiscal regime, with similar characteristics to the NCS."

Production and Reserves Impact

BlueNord's portfolio is expected to contribute:

• Net production of approximately 45,000 barrels of oil equivalent per day (boepd) from 2026
• Approximately 195 million barrels of oil equivalent in net proved plus probable reserves
• Additional near-term contingent resources, extending forecast production beyond 2040

The combined entity's production mix is expected to remain approximately 65% oil and 35% gas, with continued access to two major European gas delivery points: Nybro and Den Helder.

Timeline and Conditions

Completion is expected around the end of 2026, subject to:

• Approval by BlueNord shareholders
• Regulatory clearance
• Other customary closing conditions

Advisers

For Vår Energi:

• Financial advisers: SB1 Markets and Barclays
• Legal adviser: Schjødt
• Finance and tax: KPMG

For BlueNord:

• Advisers: Jefferies International, BAHR, and Gorrissen Federspiel
• Fairness opinion: Standard Chartered Bank

Executive Commentary

Euan Shirlaw, CEO of BlueNord, said:

"The combination with Vår Energi creates a North Sea company of real scale and resilience – one that continues what BlueNord has always stood for: reliable supply of energy to Europe and meaningful returns to shareholders. Since 2019, our shareholders have supported BlueNord through the delivery of the Tyra redevelopment and benefitted from a period of outsized distributions of close to $800m. This transaction is the natural next phase: it gives our shareholders ownership in an investment-grade company with greater scale and diversification, and the balance sheet to sustain long-term returns."

Vår Energi Q2 2026 Financial Results

Separately, Vår Energi reported its financial results for the second quarter of 2026:

• Post-tax cash flow from operations: $2.1bn
• Net debt: $3.4bn
• Leverage ratio: 0.4x
• Available liquidity: $5.3bn

Recent Developments

Last month, Vår Energi made a final investment decision for the Balder Next New Wells project in the Norwegian North Sea.