Under the terms of the agreement, Ithaca will initially receive $60m from MOL Nordsjon, a wholly owned subsidiary of MOL, while the remaining $30m is dependent on the exploration success from the licenses being sold.

IPN has a portfolio of 14 licences in the North Sea area of the Norwegian Continental Shelf.

The transaction, which is subject to the approval of the Norwegian Ministry of Petroleum and Energy, is scheduled to be completed in the third quarter.

With the transaction, Ithaca will conclude restructuring and monetisation of the Norwegian operations acquired as part of the acquisition of Valiant Petroleum in April 2013.

Ithaca will utilize the proceeds to pay off its bank debt facility.

Ithaca Energy CEO Les Thomas said: "The team has done an excellent job in restructuring the Norwegian business following its acquisition as part of the Valiant transaction in 2013.

"The sale provides Ithaca with the right opportunity to now monetise the value of this non-core part of the Company while retaining upside exposure to the anticipated drilling programme over the next two years."

MOL will enter Norway with the purchase of Ithaca’s assets. It plans to expand its presence with some more such deals, the company said.

MOL Group executive vice-president for upstream Alexander Dodds said: "Entering Norway as one of the most investor friendly countries is an important milestone in our E&P Strategy.

"It enhances our positions in the lower risk offshore North Sea area where we are in the process of building a new production hub and know-how center along the whole E&P value chain that should serve as a solid basis to our long term goals in the region."

 

Â