Under the deal, Eni becomes operator of the Cygnus Field offshore U.K. (Source: Neptune Energy)
Eni and Vår Energi completed their $4.9 billion acquisition of all of Neptune Energy’s assets except those in Germany, the three companies announced Jan. 31.
Following closing of the transactions, Neptune retains only its German operations. The three companies announced the deal in June 2023, with Vår, which is 63% owned by Eni, agreeing to buy Neptune’s Norwegian assets for approximately $2.3 billion and Eni purchasing Neptune’s remaining operations in the U.K., the Netherlands, North Africa and Asia-Pacific for approximately $2.6 billion.
Eni’s angle
Eni said the transaction brings a high-quality and low carbon-intensity portfolio that is geographically and operationally complementarity to its own.
The acquired assets include Neptune’s participation in the Eni-operated Geng North-1 gas discovery offshore Indonesia, which was announced in October 2023.
The acquisition also brings increased gas production in North Africa and opens up CCS opportunities in Northern Europe, Eni said. Through the deal, Eni picks up operatorship of the Cygnus Field off the U.K.
Vår and Neptune Norway
With the Neptune Norway acquisition, Vår becomes the second largest independent E&P company on the Norwegian Continental Shelf (NCS) and the second largest supplier of gas from Norway to Europe.
Vår’s CEO Nick Walker said in a press release that Vår is on track to nearly double production by the end of 2025, partly due to the Neptune acquisition. Vår’s portfolio targets production of 400,000 boe/d by the end of 2025.
“The transaction is cash generative from day one supporting attractive and predictable dividends going forward,” Walker said.
Through the deal, Vår now has interest in 12 producing assets and operates three of those. Production was about 66,000 boe/d in 2023 from those fields.
Vår said the transaction is expected to result in significant synergies exceeding $300 million, post-tax, over time from the development and exploration portfolio, improved asset utilization and commercial optimization of gas sales.
Integration plans
Following the Jan. 31 closing, Neptune Norway will operate as a fully owned subsidiary of Vår Energi under the name Vår Energi Norge AS.
Employees of the new subsidiary will be fully integrated into the overall Vår organization from May 1.
The companies say they will consolidate their businesses, a process that is expected to be complete in the second half of 2024.
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