Eni and Vår Energi have reached an agreement to acquire Neptune Energy, an independent exploration and production company with a portfolio of gas-oriented assets and operations in Western Europe, North Africa, Indonesia and Australia for a total enterprise value of US$4.9bn (US$2.6bn for the Neptune Global Business acquired by Eni and US$2.3bn for the Neptune Norway Business acquired by Vår. The final net consideration for both transactions will be subject to customary closing adjustments and will be paid in cash at completion. The firm is currently owned by China Investment Corporation, funds advised by Carlyle Group and CVC Capital Partners, and certain management owners.
The transaction will add around 130 kboe/d to the Eni and Vår portfolios. Neptune Energy reported reserves of 484 Mboe at end-2022. In 2022, the company produced 58 kboe/d in Norway of which 57% was gas or LNG, over 20 kboe/d in Indonesia, 18 kboe/d in the Netherlands and 15 kboe/d in the United Kingdom.
Eni will take over assets comprising Neptune’s entire portfolio other than its operations in Germany and Norway. The German operations will be carved out prior to the Eni transaction and the Norwegian operations will be acquired by Vår directly from Neptune under a separate share purchase agreement. The Vår transaction will close immediately prior to the Eni transaction with the proceeds from the Norway sale remaining with the Neptune Global Business purchased by Eni. Vår is a company listed on the Oslo Stock Exchange and is 63% owned by Eni.