M Vest Energy AS, an energy company with assets on the Norwegian Continental Shelf, is pleased to announce an agreement with CapeOmega AS to acquire a 5% working interest in the Polarled gas pipeline. Polarled is a 482 km pipeline initially built to carry gas from the Aasta Hansteen field in the Norwegian Sea to the Nyhamna process plant. Gas from Dvalin is expected to enter Polarled late 2020.
Polarled came on production in December 2018 and has opened a completely new province for gas supply from Norway to the UK and continental Europe. Gassco is the operator of Polarled.
The Transaction will be financed through a fully underwritten bond, arranged by Arctic Securities AS. The bond, which will be issued upon closing of the Transaction, will have a tenor of 10 years and will be listed on Nordic ABM.
The Transaction is subject to government and partner approval, with completion expected in Q4 2020, with effective date for the Transaction January 1 st , 2020. Arctic Securities AS acted as financial advisor while Advokatfirmaet Thommessen AS acted as legal advisor to M Vest Energy in connection with the Transaction.
CEO of M Vest Energy, Jonny Hesthammer, states:
“This is a significant milestone for us and will secure stable and important cash flow for the company. Our dedicated team has deep knowledge of the subsurface in the Norwegian Sea where we have ownership in several licenses, including a gas discovery in PL 528 (“Ivory”) and exploration licenses with significant potential, such as PL 959 (“Grågåsen”). We believe that Norwegian gas will be of high importance for the next decades as Europe moves towards becoming carbon neutral. As a first step, gas that replaces coal diminishes significantly the CO2-emissions, and in a longer perspective, the combination of gas power with carbon storage provides a footprint similar to renewables, and thus forms a good supplement to solar and wind power to satisfy future energy needs. The purchase of 5% in Polarled is perfectly aligned with the company’s strategy to be an energy company with a strong commitment to reduce the carbon footprint from energy production.”