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LetterOne chief Mikhail Fridman. Image courtesy of LetterOne Group/Flickr.

Germany’s E.ON agreed on Wednesday to sell all of its shares in E.ON E&P Norge AS to DEA Deutsche Erdoel AG (DEA) for $1.6 billion.

The transaction includes $100 million of cash on the balance sheet as of the effective date January 1, 2015.

DEA was purchased by the LetterOne Group, a Luxembourg-based investment group headed Russian billionaire Mikhail Fridman, earlier this year for $5.6 billion.

E.ON E&P Norge holds the Norwegian portfolio of E.ON’s North Sea oil and gas upstream business, comprising equity interests in 43 licenses including a 28 percent interest in the Skarv field and a 30 percent interest in the Njord field.

The company placed its North Sea E&P business under strategic review in November 2014.

“The divestment of E.ON E&P Norge represents a significant step forward in this review process. E.ON’s UK E&P business remains under strategic review and E.ON will provide an update in due course,” E.ON said.

The transaction is subject to customary regulatory approvals.

“The successful sale of our E&P business in Norway is a landmark transaction in the sector; as an important step in our overall financial framework it provides flexibility to implement our strategy and reposition the group,” E.ON CFO Michael Sen said.