Neptune agrees to terms to acquire VNG’s Norwegian business
Neptune Energy Group has an agreement to acquire VNG Norge, the Norwegian E&P subsidiary of German energy group VNG AG.
Assuming approvals for the transaction, Neptune would gain interests in the Greater Njord Area development and theFenja oilfield subsea tieback (which VNG Norge operates), both in the Norwegian Sea; and in the North Sea/Utsira High area, through a stake in the Ivar Aasen field.
Neptune hopes to complete the deal during 4Q.
In total, VNG Norge has a portfolio that comprises interests in 42 licenses offshore Norway and Denmark; five producing fields; and the Fenja, Bauge (Greater Njord Area) and Solsort (Danish North Sea) developments.
Its net production last year of around 4,000 boe/d should ramp up substantially by 2022 as new capacity comes onstream, while the company held net reserves and resources at the end of last year of more than 50 MMboe.
The assets would consolidate Neptune’s equity position in the Greater Njord area, where it would have a 22.5% in Njord and 30% of Fenja, a tieback to the Njord production hub which is set to come onstream in 2021.
Neptune said the combination of both businesses would create a strong platform with a broad range of operating skills in subsea development, drilling, production and exploration.
Sam Laidlaw, Neptune’s executive chairman, said the acquisition was a further step toward the company’s ambition of creating a leading international independent E&P company of significant scale.