HitecVision backs merger of Point Resources and Eni Norge

Nicole Tovstiga
03 July 2018

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Norwegian carbon exploration and production group Point Resources is to merge with Eni Norge, the Norwegian subsidiary of the Italian energy firm Eni.

The new combined entity will be renamed Vår Energi and will be jointly owned by Eni (69.6%) and by private equity investor HitecVision (30.4%).

HitecVision said in a statement the portfolio of the combined company will have broader geographical coverage, from the Barents Sea to the North Sea. It will produce around 180,000 barrels of oil-equivalent per day this year from 17 oil and gas fields. In total, the company plans to invest around NOK 65bn across the next five years to bring its planned projects onstream, revitalise older fields and explore for new resources.

The firm's extended presence in the Norwegian waters will also enable it to further expand its portfolio through both future exploration bid rounds and M&A transactions.

Kristin F Kragseth, currently vice-president of production at Point Resources, will become CEO of the combined entity, while Philip D Hemmens will be the chair of the board.

Previous funding
HitecVision led a NOK 3.5bn round of growth funding for Point Resources in January 2016. The GP deployed equity via its HitecVision VII fund. Point Resources was formed as a consolidation of three portfolio companies; Spike Exploration, Pure E&P – previously Rocksource; and Core Energy.

The Oslo-based oil-and-gas-focused private equity firm financed the acquisition of ExxonMobil's Norwegian exploration and production operations by its portfolio company Point Resources, in March 2017. The deal saw ExxonMobil Exploration and Production Norway merge with Point Resources. HitecVision expected the merger to form a mid-sized Norwegian exploration and production player, with around 60,000 barrels of oil equivalent per day produced in 2016 and the potential to grow production to 80,000 by 2022.

Company
Point Resources was created by HitecVision in January 2016 through the merger of HitecVision's portfolio companies Core Energy, Spike Exploration and Pure E&P. Following the latest merger and rebranding, Vår Energi will employ a staff of 800, including both offshore and onshore employees.

People
HitecVision – Ole Ertvaag (CEO, founding partner).
Point Resources – Morten Mauritzen (CEO).
Eni – Claudio Descalzi (CEO).
Eni Norge – Philip D Hemmens (managing director).