Italian energy major Eni has bought Neptune Energy for around $4.9bn in what is dubbed the largest cash deal in the European oil and gas sector in the past ten years.
Currently, Neptune produces oil and gas from fields in eight countries with the most prominent being the UK, Norway, Germany, Algeria, the Netherlands, and Indonesia.
The transaction comprises Neptune’s entire portfolio other than its operations in Norway which was purchased by Vår Energi, 63% owned by Eni. Also not included in the acquisition are the company’s German operations which were carved out of the transaction.
Vår Energi’s acquisition of Neptune’s Norwegian business was completed directly from Neptune before the Eni transaction as was the carve-out of Neptune’s activities in Germany. Neptune’s operations in Germany will continue as a stand-alone entity owned and operated by CIC, Carlyle, and CVC Capital.
Under the agreed terms, the Neptune Global Business had an enterprise value of $2.6bn, while the Neptune Norway Business was valued at around $2.3bn.
The transaction, first announced in June 2023, includes Neptune’s participation in the Eni-operated Geng North-1 gas discovery, offshore Indonesia. Eni stated that this was a strategic buy due to the increased gas production in North Africa, where Eni holds a position of the most prominent international energy company as well as in Northern Europe, where the transaction opens new CCS opportunities. Neptune produces about 135,000 boepd, three-quarters of which is natural gas. About 10% of its production comes from UK waters.
