Faroe agrees Norwegian asset swap with Equinor

Faroe Petroleum, the Aberdeen-based oil explorer, has agreed a deal to swap Norwegian oil and gas assets with Equinor, in a move that could allow it to return cash to its shareholders.

Faroe boss Graham Stewartsaidthedealhadbeenin the pipeline before a recent hostile swoop from Norway’s DNO.

“It’s not a frustrating action,” he said. “The deal was approved before the takeover proposal.”

He added that the deal would reduce capital expenditure and improve the group’s financial flexibility.

Last month, Faroe rejected a £608 million bid from DNO, which it said significantly undervalued the business.