VNG to evaluate options for its Norwegian E&P business

As widely expected, VNG's owner EnBW is looking for a partner or buyer for its E&P business VNG - full press release below.

As part of VNG Group’s strategic programme “VNG 2030+”, VNG – Verbundnetz Gas Aktiengesellschaft (VNG AG) will explore strategic options for its oil and gas exploration and production business in Norway and Denmark, VNG Norge AS (“VNG Norge”). As VNG AG sees long term value creation potential in the E&P-business, the main objectives are to maximise the value of VNG Norge and to support further growth to position the shareholding as a leading player on the Norwegian Continental Shelf together with a strategic partner.

VNG Norge is a full-cycle Norway-focused E&P company, with a solid growth portfolio underpinned by the operated flagship asset “Fenja”, one of the largest Norwegian discoveries in recent years (formerly “Pil”), which is proceeding according to plan, sanctioned by VNG AG and fully supported by all shareholders of VNG AG. Overall the company holds interests in 32 licenses in Norway, two in Denmark and participates in five producing fields and in three field developments at the end of 2017.

Source: https://www.vng.de/en/news/vng-ag-evaluate-options-maximise-value-its-norwegian-ep-business

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Apache divesting international assets? A hard one!

On 31 July 2014, Apache announced its Q2 2014 results

• Apache said it was looking to exit its Canadian LNG positions and was considering options around its international assets
• This comes amidst Jana Partners, a hedge fund which recently picked up c.USD1bn of shares in Apache, wrote to investors arguing that Apache should focus its efforts on the North American onshore
• Reasoning behind this is that over the last few years, a number of North American onshore pure plays have outperformed Apache
• Apache's international assets, it is argued, are diluting its North American onshore story
• However, analysts do not necessarily agree
• Apache's international assets, especially those in Egypt and the North Sea, generate significant free cash flow for the group
• These are areas of existing production and are low risk operations
• The cash flows are important for the funding of the North American portfolio
• It is further noted that given the number of North Sea assets on the market, the geopolitic issues plaguing North Africa and the relative maturity (though strong cash flow generation) of these assets, it is unlikely that Apache will fund a buyer willing to pay full value
• Its other main operations are in Australia, including the Wheatstone LNG project

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