Eni, along with Vår Energi, to acquire Neptune Energy Group
Photo courtesy of Neptune Energy Group

Eni, along with Vår Energi, to acquire Neptune Energy Group

Eni S.p.A., an Italian multinational energy company, along with Vår Energi ASA, has reached an agreement to acquire Neptune Energy Group Limited. Vår is a company listed on the Oslo Stock Exchange and is 63% owned by Eni. 

Neptune is a leading independent exploration and production company with a world-class  portfolio of gas-oriented assets and operations in Western Europe, North Africa, Indonesia  and Australia. The portfolio is competitive in terms of cost and low in operational emissions. Neptune was founded in 2015 by Sam Laidlaw and is currently owned by China Investment  Corporation, funds advised by Carlyle Group and CVC Capital Partners, and certain  management owners. 

‘’This transaction  delivers to Eni a high-quality and low carbon intensity portfolio with exceptional strategic and  operational complementarity. Eni sees gas as a critical bridge energy source in the global  energy transition and is focused on increasing the share of its natural gas production to 60%  by 2030. Neptune will contribute predominantly gas resources to Eni’s portfolio,” said Eni’s CEO, Claudio Descalzi.

Eni will acquire 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. 

Under the agreed terms, the Neptune Global Business will have an enterprise value of about USD2.6 billion, while the Neptune Norway Business will have an enterprise value of about USD2.3 billion. As  of 31 December 2022, net debt of the Neptune Global Business, pro forma for the sale of  the Neptune Norway Business, was abut USD0.5 billion. The final net consideration for both  transactions will be subject to customary closing adjustments and will be paid in cash at  completion. The Eni transaction will be funded through available liquidity

The transaction represents an exceptional fit for Eni. It complements Eni’s key areas of  geographic focus and supports its objective of increasing the share of natural gas production  to 60%, and reaching net zero emissions (Scope 1+2) from the Upstream business by 2030.  The transaction aligns with Eni’s strategy of providing affordable, secure and low carbon energy to society, for which natural gas remains an important source. The transaction is also consistent with Eni’s operating and financial framework, as well as the targets set out in  Eni’s 2023-2026 Plan, delivering earnings and cashflow accretion, additional shareholder  value and remuneration upside. 

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