ITALIAN energy major Eni has agreed to acquire Neptune Energy for $4.9billion in what is the largest cash deal in the European oil and gas sector for almost a decade.
North Sea firm Neptune produces oil and gas from fields in eight countries, including the UK, Norway, Germany, Algeria, the Netherlands and Indonesia, where it already shares a licence with Eni.
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Under the terms of the deal announced this morning, Eni will acquire Neptune, while Var Energi — Eni’s Norwegian listed subsidiary — will acquire the company’s operations in Norway.
In a statement released at 7am this morning, Sam Laidlaw, Executive Chairman 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.”
Bob Maguire, a managing director at Carlyle, which owns 30.6% of Neptune, told the Financial Times that the company’s portfolio of producing gasfields, many of them close to or with access to European markets, had made Neptune attractive to Eni, particularly as it sought to replace gas it had previously secured from Russia.
Neptune produces about 135,000 barrels per day, roughly three-quarters of which is natural gas. About 10% of its production comes form UK waters, where the business will trade as Enionce the deal completes.
”This transaction delivers to Eni a high-quality and low carbon intensity portfolio,” said Eni chief executive Claudio Descalzi.
Eni, which is 30% owned by the Italian government,sees gas as “a critical bridge energy source” in the global energy transition.
The transaction is expected to close by the end March 2024.
Neptune’s assets in Germany are not part of the deal and will continue to operated by the current shareholders.
