E.ON, Germany’s largest utility company, has agreed to sell its Norwegian oil and gas business to Russian billionaire Mikhail Fridman in a $1.6 billion transaction, according to Reuters.
E.ON plans to spin off its remaining energy trading, conventional generation, and exploration and production operations into a separate unit, Uniper, in 2016.
Reuters noted that E.ON holds approximately 30 licenses in Norway, mostly exploration assets. Very few are in production and none are operated by E.ON. One of its producing fields, Njord, is operated by Statoil. Another producing field, Skarv, is operated by BP.
Subject to regulatory approval, the sale to Fridman is expected to close by the end of 2015.