Canada’s Tenaz to acquire Dutch NAM’s offshore assets
Tenaz Energy, with operations in Canada and offshore the Netherlands, said July 18 it had entered into an agreement with NAM, the 50/50 Dutch joint venture between Shell and ExxonMobil, to acquire NAM Offshore for a base consideration of €165mn (C$246mn), prior to closing adjustments and contingent payments.
NAM Offshore is expected to produce 11,000 barrels of oil equivalent (boe)/day, of which 99% is natural gas, and generate about €90mn of free cash flow based on current strip prices.
Shell and ExxonMobil initiated the sale of NAM, which operates the onshore Groningen natural gas field, in 2022, along with stakes in the North Sea gas hub. At the same time, NAM independently launched the sale of NAM Offshore.
In Q1 2024, Tenaz had total production of 2,887 boe/day, including about 10mn ft3/day of natural gas. Canadian production averaged 1,926 boe/day, including 4.3mn ft3/day of natural gas, while production from the Netherlands averaged 961 boe/day, including 5.7mn ft3/day of natural gas and a small daily volume of natural gas liquids.
The acquisition includes substantially all of NAM’s offshore exploration and production business, including associated pipeline infrastructure and onshore processing in the Netherlands. It does not include NAM’s assets in the Ameland area.
Upstream assets consist of production and exploration licences in the Dutch North Sea (DNS) covering some 2,415 net km2 located 60 km offshore in water depths averaging about 34 meters.
On closing, Tenaz will become the second largest operator in the DNS. Production acquired from NAM Offshore accounts for about 20% of total DNS production, operated 87% by NAM Offshore.
The transaction has an effective date of January 1, 2024, and is expected to close mid-2025 following statutory merger clearances and operational transition activities.