Russian billionaire buys $1.6 billion Norwegian North Sea assets

Russian businessman Mikhail Fridman has purchased Norwegian North Sea oil and gas assets from E.ON for a reported US$1.6 billion, according to Reuters.

Fridman had previously tried to invest in the UK's North Sea assets, but was thwarted as a result of EU sanctions against Russia.   His company LetterOne has acquired oil and gas firm DEA, which has existing operations in Norway.

"This acquisition in Norway is a perfect fit to our renewed business strategy," DEA's CEO Thomas Rappuhn, told Reuters.

The deal would see DEA's Norwegian output double to 75,000 barrels per day (bpd) when the deal closes later in 2015.

Norway ranks 15th in terms of global oil production levels, producing around 1.9 million bpd. Although Norway has close economic ties with the EU, it is not a member of it, allowing Russian investors to access European oil reserves without violating EU sanctions.

Fridman's purchase price of $1.6 billion is thought to be slightly above the market value of E.On's Norwegian assets. The offer saw the company's shares jump by 4.5 per cent on Wednesday.

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