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Struggling Noreco fires CEO

Svein Arild Killingland steps down as CEO of Norwegian oil company Noreco. The company is currently fighting to stay alive.

Following a protracted financial crisis at Norwegian oil company Noreco, CEO Svein Arild Killingland is resigning from the company, says the company in a statement on Monday. Noreco co-owns several North Sea oil fields together with Dong Energy and Maersk Oil.

Svein Arild Killingsland thus wound up serving just a year and a half as CEO of the company, which will now be headed by former CFO Tommy Sundt, who joined Noreco as late as September.

He will be replaced by Odd Arne Slettebø, who has served as head of finance until now.

Huge interest in North Sea oil exploration

The firing of Svein Arild Killingland comes after the company announced last week that Noreco is unable to pay USD 100 million in repayments and interests set to mature in December. Furthermore, the company announced in October that it was forced to perform impairments for more than USD 133.4 million on two oil fields. One of these is Oselvar, co-owned by Dong.

In the statement today, Noreco informs that "the board has high expectations of working together with Sundt on finding solutions to the challenging position in which the Company finds itself and to realise the opportunities inherent in its business."

What this means, specifically, remains unknown, but on Friday Dong Energy told EnergiWatch that divesting stakes could be one cure in case the Norwegians fail to find a different solution to the company's financial woes.

"Of course there could be consequences in terms of ownership if Noreco fails to solve these financial challenges," said Ulrik Frøhlke, press consultant, Dong Energy.

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