Gullkronen 2012 award to Petoro and Faroe Petroleum
Petoro and Faroe Petroleum were jointly awarded Business Developer prize of the year, during Rystad Energy's "Gullkronen 2012" in Oslo recently. The award was for the swop of assets between Petoro and Faroe last year, where Petoro acquired Faroes 30 per cent share of the Maria discovery in the Norwegian Sea, while Faroe took over shares in a number of producing fields which were of less significance in Petoro's 146 license portfolio. fikk andeler i en rekke mindre felt som er i produksjon.
Ida Veland, Faroe Petroleum; Ragnar Sandvik, Petoro; John A. Olaisen, Carnegie; Arne Gulbrandsen, Rystad Energy. Photo: www.fotograflillian.no
"The deal was noticed in the industry and my impression it was seen as logical and sensible for both companies. This price is a pleasant confirmation og such an impression", said Ragnar Sandvik, Petoro's chief negotiator, who received the award on behalf of the company. Chief financial officer Marion Svihus said the dela do not imply a much more active Petoro in the terms of bying, selling or swopping assets. She added, however that this deal proves that given the right conditions and with an obvious reward for both parties, it is possible for Petoro and the SDFI to make such deals.
The jury's reasoning was that "The winner of the Business Developer Award has been involved in a transaction that demonstrated creativity and that has surprised the market in a positive way. The deal reflects both seller and buyer perspectives and shows active steps to high grading of asset portfolios. A company with a very mature portfolio has through an attractive discovery gained foothold in an area with high activity level going forward. This company has also been able to divest non-core fields, that is fields with the least net production and resources. The other company has made a deal that could be regarded as a “Company maker” by moving from exploration success to producing fields. Compared to the seller, these fields significantly build the portfolio and lift cash flow.