Var Energi announced on Friday that it has “reinforced[ed]” its management team “to reaffirm its strategic ambitions”.
In a statement published on its website on Friday, Var Energi said its recent acquisition of Neptune Energy Norge will accelerate its position as the independent E&P leader in Norway, adding that the company is currently the third largest operator of the Norwegian continental shelf.
“The acquisition will increase, diversify and strengthen its growth and value creation,” Var Energi said in the statement.
“In response to these new opportunities, the board has decided to make certain adjustments to the management group and provide more resources,” he added.
Var Energi revealed in the statement that Nick Walker will join the company as CEO from September 5 and that its current CEO, Torger Rød, will transfer to the role of COO.
Walker most recently served as CEO of Lundin Energy until mid-2022, when it was acquired by Aker BP, Var Energi noted. He has previously worked with BP, Talisman Energy, Africa Oil and Vedanta – Cairn Oil & Gas and has 30 years of international experience in technical, commercial and executive leadership roles, the company noted.
Walker “will lead the company’s strategy, market engagement and stakeholder management,” according to the statement.
Rød joined Var Energi in June 2021 and was previously at Equinor for 23 years, including 11 years in executive positions, both in Norway and internationally, Var Energi’s website shows.
Most recently, he served as vice president and head of corporate safety and security, and prior to that role, he was vice president and head of project development, where he was responsible for all operated project development deliverables and the creation of value to Equinor, the site of Var Energi. notes
“I have closely followed Var Energi’s impressive development over the past few years and have great respect for the company’s strong track record and operational heritage in NCS,” Walker said in Var Energi’s statement.
“I welcome this opportunity to lead the company through its next phase of growth and deliver on the strategy, which remains strong,” he added.
Thorhild Widvey, chairman of the board of Var Energi, said: “Torger Rød has led the company through a transformative phase and achieved strong operational and financial results, including a very successful IPO, the aforementioned acquisition of Neptune, the strengthening of the organization, while meeting strategic ambitions”.
“He will now deploy his deep operational skills and understanding of the organization in the role of COO to continue to drive improvement, integration and transformation of the company,” Widvey added.
In June, Var Energi announced it was acquiring Neptune Energy’s Norwegian oil and gas assets “to accelerate growth and value creation in the NCS.”
The company noted at the time that it had entered into an agreement with Neptune Energy Group Holdings Limited to acquire 100 percent of the shares of Neptune Energy Norge AS “for cash consideration based on an agreed enterprise value of $2.275 billion “.
Along with the transaction, Eni agreed to acquire the remaining assets of the Neptune group outside Norway and Germany in a separate transaction, Var Energi said in the statement, adding that “the completion of both transactions is interconditional.”
“The transaction will add scale, diversification and greater longevity to Var Energi’s portfolio. It is in line with the plan for growth and value creation, the path to ESG leadership and the attractive distributions presented in the capital markets update of 2023,” Var Energi said in the statement.
“The acquired assets are complementary to Var Energi’s current portfolio and are highly cash-generating with low production costs and limited short-term investments,” he added.
“The transaction will strengthen the company’s position in all existing core areas and combine two strong organizations with extensive experience in NCS. It will be financed through available liquidity and credit facilities and is expected to strengthen the ability to future dividends,” continued Var Energi.
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