Eni strengthens its presence in the North Sea through Var Energi, a company listed in Oslo and controlled by the Italian group. The operation concerns the acquisition and merger with BlueNord, a Norwegian company active in the Danish sector of the North Sea, for a total value of approximately 1.3 billion dollars. The agreement provides for compensation partly in shares and partly in cash. Following the operation, Eni will remain the strategic majority shareholder of the new company, but its share will fall from 63% to approximately 57.3%. The merger will create the largest independent oil and gas producer in Europe, with a long-term production target of around 450,000 barrels per day. The closing of the transaction is expected by the end of the year.
What does the agreement between Var Energi and BlueNord provide
Var Energi and BlueNord have reached a merger agreement approved by their respective boards of directors. The structure of the operation involves the creation, by Var Energi, of a new subsidiary company which will be merged with BlueNord. BlueNord shareholders will receive 248.4 million new Var Energi shares and 1,964 million Norwegian kroner, or approximately $204 million, in cash.
After the completion of the transaction, the current shareholders of Var Energi will hold approximately 90.95% of the capital of the company resulting from the merger, while the shareholders of BlueNord will have approximately 9.05%. The industrial value of the agreement arises from the geographical and operational complementarity between the two companies. Var Energi operates on the Norwegian continental shelf, while BlueNord has mining assets in the Danish sector of the North Sea.
The union therefore allows us to expand the portfolio in an area considered strategic for European energy production. The Danish continental shelf is described as an attractive offshore basin, with a stable and favorable fiscal regime and geological and operational characteristics similar to those of the Norwegian shelf. For Eni, the operation allows it to strengthen its presence in a consolidated oil region, while increasing the production scale of its subsidiary Var Energi.
The benefits and dividends for Var Energi shareholders
Var Energi estimates cumulative after-tax benefits of between $250 and $300 million over the period 2027-2032. The synergies should come mainly from three areas: lower financing costs, reduction of general costs and access to the balance sheet of the company resulting from the merger, which can count on a high investment rating. The aggregation is also expected to strengthen the gas sales portfolio and improve operational efficiency.
According to the company, the transaction will have positive effects on earnings per share, production, reserves, operating cash flow and free cash flow. Furthermore, Var Energi confirmed its intention to maintain its long-term dividend policy. The company aims to spread 25-30% of its pre-tax operating cash flow across business cycles.
Following the expected value creation from the transaction, Var Energi intends to increase its second quarter 2026 dividend to $350 million. This dividend will be paid exclusively to current Var Energi shareholders. The company also plans to distribute a $350 million dividend for third quarter 2026 as well, this time to shareholders of the combined company.
