Neptune Energy has closed the purchase of VNG’s Norwegian subsidiary VNG Norge for an undisclosed price. The deal was announced on June 28, and completed on Friday, September 28.
With the acquisition, Neptune will get hold of three producing fields, two development projects, and 42 licenses. This will, Neptune said, consolidate the company amongst the top five independent producers on the Norwegian Continental Shelf, by equity production.
Private-equity backed Neptune said the VNG Norge asset base was highly complementary to Neptune Energy’s existing Norwegian portfolio, strengthening its equity position in the greater Njord area to 22.5 percent in Njord itself as well as a 30 percent interest in, and operatorship of, the Fenja development project.
Fenja is a sub-sea development, which will be produced as a tie-back to the Njord production hub, and is scheduled to come on stream in 2021.
Jim House, CEO of Neptune Energy, said: “This acquisition represents an excellent strategic fit with our existing portfolio, adding competitive growth assets in core areas of the Norwegian Continental Shelf. It will further underpin Neptune’s Energy’s portfolio with broad operating skills in subsea development, drilling, production and engineering. The transaction is in line with our strategy of expanding our position in key jurisdictions with high quality and complementary assets.
“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.”
VNG Norge net production for 2017 was 4,000 boepd with a significant ramp up by 2022 as new production comes on stream, Neptune said. Net reserves and resources were more than 50 mmboe as of 31 December 2017.
Neptune Energy has previously acquired Engie E&P International (EPI) from the French energy group, Engie for an aggregate value of €4.7 billion. This transaction closed in February 2018. Then in August, Neptune said it would acquire Apache’s 35% working interest in the Seagull development and a 50% working interest in the Isabella prospect; both operated by Apache in the North Sea.