Norway’s Det norske warned investors Friday that it will book a non cash impairment between $320 million to $340 million in the fourth quarter of 2014.
The impairment is tied to the company’s 2014 acquisition of Marathon Oil’s Norwegian business, Reuters said.
Det norske said it has a recognized regular good will of about $300 million and technical good will of about $1.2 billion for the fourth quarter.
The company will also begin reporting its earnings in U.S. dollars instead of Norwegian crowns.
Det norske converted its balance sheet to dollars at a rate of 6.6161 as of October 15, 2014, the closing date of its Marathon Oil acquisition.
Houston-based Marathon Oil Corporation sold its Norway subsidiary to Det norske for a total transaction value of $2.7 billion.
The sale included the Marathon operated Alvheim FPSO vessel as well as 10 operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea.