Neptune closes Engie E&P buy

Private-equity backed Neptune Energy has completed the acquisition of Engie E&P International (EPI) from the French energy group, Engie. 

Engie received an offer from Neptune for the stake in its oil and gas exploration and production business, Engie E&P, in May 2017.

Neptune, an investment firm established in 2015 by an ex-Centrica boss Sam Laidlaw, offered to buy Engie’s 70% interest in EPI for an aggregate value of €4.7 billion (at 100%, including €1.1 billion in decommissioning liabilities deconsolidated from Engie’s balance sheet).

Neptune announced the close of the transaction on Thursday, February 15, 2018. The transaction sees Neptune become an international independent E&P company across the North Sea, North Africa and South East Asia, producing 154,000 net barrels of oil equivalent per day in 2017.

Neptune said that its new global platform offers a sustainable asset base throughout the E&P value chain, a good balance of oil and gas and with low operating costs.

The North Sea region benefits from a strong operating base in strategic assets such as Cygnus in the UK and Gjøa in Norway, while Neptune is the offshore operator in the Netherlands. North Africa and Southeast Asia provide near-term gas volume growth into strengthening markets while Germany offers a strong, long-life oil production base, the company explained.

Sam Laidlaw, Executive Chairman of Neptune Energy Group, said: “I am pleased to announce the completion of this significant achievement, which is the result of some three year’s work and marks a new beginning for Neptune Energy.

“Building on the success and hard work of the EPI team and leveraging its strong portfolio of assets, we aim to generate long term sustained value for the countries in which we operate, our employees and for our investors in order to create a leading international independent E&P company within the next 5 years. In creating and delivering this opportunity, the team at Neptune also have great support from our investors: China Investment Corporation (CIC), The Carlyle Group and CVC.”

Jim House, Chief Executive Officer of Neptune Energy, said: “I am extremely pleased to officially welcome the EPI business and its dedicated employees to the Neptune family. The business is driven by a dynamic organisation of more than 1,800 staff working across exploration, appraisal, development and production, all of whom are critical to the future growth and success of Neptune Energy.”

Welcoming completion of the Neptune – Engie transaction, Deirdre Michie, CEO of Oil & Gas UK said: “Having an enterprising company like Neptune growing with the North Sea at the heart of its business is also good news for the future of the UK oil and gas industry.

“This transaction highlights that the UK oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years.

“Our industry supports hundreds of thousands of jobs, energy security and provides billions of pounds to the UK economy. Its continued success requires investment like this.”

Offshore Energy Today Staff

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