Deal insight
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6 Pages

Hess acquires Noreco's interest in South Arne for US$200 million

Hess acquires Noreco's interest in South Arne for US$200 million

Report summary

Norwegian independent Noreco has announced the divestment of its interest in the Danish South Arne field to Hess Corporation in exchange for a cash consideration of US$200 million. The deal is the latest in a series of divestments by Noreco aimed at reducing capital commitments and stabilising the company's financial position. For Hess, the acquisition is an opportunistic move to consolidate its interest in one of the company's key assets outside of North America. Under our base ...

What's included?

This report includes 1 file(s)

  • Hess acquires Noreco's interest in South Arne for US$200 million PDF - 425.27 KB 6 Pages, 6 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • South Arne
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
    • Hess Corporation
    • Noreco
  • Oil & gas pricing and assumptions

In this report there are 9 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • South Arne - Production vs costs (gross)
    • Upstream assets: Table 1
  • Deal analysis
    • Wood Mackenzie valuation - production and discount sensitivity
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
    • Noreco - estimated capital commitments and production
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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