Vaar Energi, the third biggest oil producer in Norway, is planning an Oslo stock market listing and to raise capital through two private placements.
The initial public offereing could, depending on its size and market value, be the largest oil and gas listing since Aramco raised $25.6 billion at a $1.7 trillion valuation during its IPO in 2019, according to the Financial Times, quoting data provider Dealogic.
The company, which is valued at between $10 billion-$15 billion, had an average production of 247,000 barrels per day during the third quarter.
The group, which is about 70 percent owned by Eni with the rest owned by HitecVision is looking at institutional investors but Eni intends to remain the majority shareholder after the listing. DNB, JPMorgan, Morgan Stanley and SpareBank 1 are acting as joint global coordinators for the IPO.
“We believe oil and gas will continue to be part of the energy mix for decades to come. The current gas market developments in Europe confirm our view that a reliable and safe supply of natural gas from Norway will be crucial,” said CEO Torger Roed.
Norway is western Europe’s biggest hydrocarbon producer. The company sees the Norwegian continental shelf as one of the most appealing regions for exploration and production globally, thanks to cost competitive and stable regulatory environments as well as low emissions.
Yet recent IPO have faced hurdles as investors insist on sustainability. Vaar Energi wants to achieve zero carbon emissions in its own production by 2030. It is also looking to boost its production to 350,000 bpd by 2025.