Energean finds buyer for Edison's North Sea interests

Neptune Energy has a conditional agreement to acquire Edison E&P’s UK and Norwegian interests from Energean for $250 million.

With the acquisition, the company will acquire a 15% interest in the Nova gas project, a subsea tieback to the Neptune-operated Gjøa field in the Norwegian North Sea.
With the acquisition, the company will acquire a 15% interest in the Nova gas project, a subsea tieback to the Neptune-operated Gjøa field in the Norwegian North Sea.
(Courtesy Neptune Energy)

Offshore staff

LONDONNeptune Energy has a conditional agreement to acquire Edison E&P’s UK and Norwegian interests from Energean for $250 million.

The deal remains contingent on Energean completing its proposed acquisition of the Italian E&P company.

Neptune expects to add 30 MMboe via the transaction, the package including:

  • Glengorm gas condensate discovery (25%) in the UK central North Sea, close to Neptune’s operated Seagull project.
  • Nova gas development project (15%), a subsea tieback to the Neptune-operated Gjøa field in the Norwegian North Sea. Production is set to start in 2021.
  • Dvalin (10%) a gas development/subsea tieback to Heidrun in the Norwegian Sea. Drilling will start soon on the four gas wells with start-up set to follow by the end of 2020.
  • Scott (10.5%) and Telford (15.7%) in the UK central North Sea; Tors (68%), Wenlock (80%) and Markham (3.1%) in the southern gas basin. Neptune views Tors as strategically important to its operated Cygnus field due to the two fields’ shared export route.
  • Isabella license (10%), where exploration drilling is due to start soon.

Jim House, CEO of Neptune, said: “The assets are an excellent fit with our North Sea portfolio. Nova and Dvalin are expected to add 12,000 boe/d to our production base over the next two years and Glengorm adds significant potential for the longer term.”

Energean said the proposed sale supports its strategy of becoming the largest independent gas-focused E&P company in the Mediterranean.

Pending regulatory approvals, the transaction is expected to be completed in early 2020.

10/14/2019

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