One of the biggest producers of gas in the UK’s North Sea will be bought by Italian oil giant Eni after the two agreed a £2.1bn deal.
The deal will see Eni take over Neptune Energy, with Norway’s Vår Energi buying its sites in the Norwegian continental shelf for a further £1.8bn. Vår is majority owned by Eni.
Neptune’s business in Germany is not part of the transactions and will continue to be owned and operated by the ultimate existing Neptune shareholders as a standalone group.
In one of the biggest European deals in years, Eni will get control over Neptune’s assets in Australia, Algeria, the Netherlands and Indonesia.
The boards of Eni, Vår and Neptune stated that the proposed combinations will enhance technical and financial capabilities to participate in the energy transition.
The existing upstream portfolios of the companies are low carbon intensity gas-focused, with complementary geographic exposure, providing Eni and Vår with increased scale in growth areas and enhanced decarbonisation opportunities.
Completion of the acquisitions is conditional upon, among other things, the receipt of necessary regulatory and governmental clearances, but is expected to close by the end of the first quarter next year.
Sam Laidlaw, executive chair of Neptune Energy, said: “Since Neptune’s formation in 2018, we have invested in the business and transformed the organisation, resulting in material improvements in safety, operational performance and cost efficiency.
“I am incredibly proud of Neptune’s achievements over the past five years – and the hard work and dedication of so many people across our organisation, who, together with our shareholders, have contributed to the growth and success of the business.
“This transaction offers a new and exciting phase for Neptune, with significant growth opportunities supporting energy security and the energy transition, which will benefit from Eni’s and Vår Energi’s larger scale and available resources.”
Eni’s chief executive Claudio Descalzi said: “This transaction delivers to Eni a high-quality and low carbon intensity portfolio with exceptional strategic and operational complementarity.
“Eni sees gas as a critical bridge energy source in the global energy transition and is focused on increasing the share of its natural gas production to 60% by 2030.”
Neptune Energy was advised on the transaction by Goldman Sachs International, Rothschild & Co, Freshfields Bruckhaus Deringer and Advokatfirmaet.
The company has operations across Europe, North Africa and Asia Pacific, producing 135,000 net barrels of oil equivalent per day in 2022 and 2P reserves at 31st December 2022 of 552 million barrels of oil equivalent.
It is owned by CIC and funds advised by Carlyle Group and CVC Capital Partners.
Milan-headquartered Eni is a global energy group with more than 32,000 employees and operations spanning across 62 countries, while Stavanger-headquartered Vår is an independent upstream oil and gas company on the Norwegian continental shelf, with more than 900 employees and equity stakes in 39 fields.
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