Vår Energi and BlueNord have agreed to combine their businesses through a transaction valued at approximately $1.3 billion. The companies said the merger would create Europe’s largest independent oil and gas producer.
The boards of both companies have approved the proposed transaction. Vår Energi will establish a new subsidiary that will merge with BlueNord.
Under the agreement, BlueNord shareholders will receive 248.4 million new Vår Energi shares and NOK 2.0 billion ($204.0 million) in cash. The consideration for each BlueNord share will comprise 9.7 Vår Energi shares and NOK 76.8 ($8.0) in cash.
After completion, existing Vår Energi shareholders are expected to own approximately 91.0% of the combined company. BlueNord shareholders are expected to hold about 9.1%.
Eni will remain the long-term strategic majority shareholder, with an expected post-transaction ownership interest of approximately 57.3%.
The transaction requires approval from BlueNord shareholders at an extraordinary general meeting and remains subject to other customary conditions. Closing is expected around the end of 2026.
The combined company is expected to have long-term production of approximately 450,000 barrels of oil equivalent per day. Its portfolio will include around 2.4 billion barrels of oil equivalent in reserves and resources, with operating costs of approximately $10-11 per barrel of oil equivalent.
The merger will add BlueNord’s interests in producing assets on the Danish Continental Shelf, including the Tyra, Halfdan, Dan and Gorm hub areas. These assets are expected to contribute approximately 45,000 barrels of oil equivalent per day in net production from 2026.
The Danish portfolio includes approximately 195.0 million barrels of oil equivalent in net 2P reserves and near-term 2C contingent resources. Production from the assets is expected to continue beyond 2040.
The assets are part of the Danish Underground Consortium, which is operated by TotalEnergies. They are located near Vår Energi’s existing assets in the southern Norwegian Continental Shelf.
The combined portfolio will also provide access to the Nybro and Den Helder gas delivery points serving the European market.
