Italian oil major Eni is set to acquire the vast majority of Neptune Energy’s portfolio of assets in a deal worth $4.9 billion.
The assets of Neptune’s German business will be carved out from the acquisition, while the Norwegian assets will be acquired by Vår Energi, which is 63% owned by Eni, in a separate share and purchase agreement. Eni says the remaining assets will be transferred to it directly.
Neptune has a considerable portfolio of gas-oriented assets in North Africa, Western Europe, Australia, and Indonesia, and Eni finds their low operational emissions and cost competiveness attractive. Claudio Descalzi, the CEO of Eni, said about the transaction:
“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 per cent by 2030. Neptune will contribute predominantly gas resources to Eni’s portfolio.”
He also said there was a striking operational and geographical overlap between the two companies.
Like many companies, Neptune operates many projects jointly with other oil and gas companies. For example, it operates the Seagull field in the UK North Sea, which is currently under development, but BP owns a 50% stake in the project. Production from the field will also tie back into the ETAP central processing facility, which is operated by BP.
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