Neptune Completes VNG Norge Deal
Neptune Energy said September 28 it has completed its acquisition of VNG Norge, as agreed three months previously. Neither company then or now disclosed a transaction price.
The transaction adds three producing fields, two development projects and 42 licences to Neptune Energy’s existing portfolio, consolidating the company amongst the top five independent producers on the Norwegian continental shelf, by equity production. Last month Neptune also agreed to acquire a smaller Apache UK asset, again for an undisclosed price.
Neptune CEO Jim House said: “We look forward to welcoming the VNG Norge employees to Neptune Energy as we accelerate our ambition to create the leading independent international E&P business.” It said VNG Norge's net 2017 production as 4,000 barrels of oil equivalent per day, with a major ramp up by 2022 as new output comes onstream. Net reserves and resources were over 50 mmboe at end-2017.
VNG CEO Ulf Heitmuller said: “Today we have closed a chapter in the history of VNG which we have written since 2006 when VNG Norge was founded. We wish our former colleagues continued success." Leipzig-based VNG would pursue its "future-oriented VNG 2030+ strategy" to develop digital infrastructure, biogas and local energy solutions and further strengthen its gas infrastructure and gas trading.
Neptune's core business was built around the $4.7bn acquisition completed eight months ago of Engie E&P, which delivered assets across the North Sea, North Africa and Asia Pacific. Its backers include Chinese sovereign wealth fund China Investment Corporation (CIC) and private equity groups Carlyle and CVC.
BASF meanwhile has confirmed that, regarding its September 27 accord to create Wintershall DEA, the new entity has yet to have a supervisory board chairman appointed (see update here).
Banner photo shows Cygnus Alpha platform in the UK North Sea. Neptune acquired its 38.75% non-operated interest in the Cygnus gas field from Engie E&P earlier this year (Photo credit: Neptune/Polar Media)