Italian supermajor Eni and UK firm Neptune Energy have ended weeks of speculation by unveiling a £3.8 billion-plus takeover deal.
It will see Britain’s single largest producing gasfield, Neptune’s Cygnus facility, and other UK North Sea assets changing hands.
Around 100 Neptune staff in Aberdeen, among 200 in the UK, will transfer to Eni.
Part of the Neptune business – its German operations – will stay with the current shareholders. The firm’s Norwegian assets are being sold to Eni-owned Var Energy.
Neptune employs about 1,400 people globally.
This transaction offers a new and exciting phase for Neptune”
Sam Laidlaw, Neptune Energy
Sam Laidlaw, the company’s executive chairman, said: “Since Neptune’s formation in 2018 we have invested in the business and transformed the organisation, resulting in material improvements in safety, operational performance and cost efficiency.
“I am incredibly proud of Neptune’s achievements over the past five years – and the hard work and dedication of so many people across our organisation, who, together with our shareholders, have contributed to the growth and success of the business.
“This transaction offers a new and exciting phase for Neptune, with significant growth opportunities supporting energy security and the energy transition, which will benefit from Eni’s and Vår Energi’s larger scale and available resources.”
Neptune’s current shareholders include China Investment Corporation (CIC), Carlyle Group and CVC Capital Partners. Chinese state-owned CIC controls just under 50%.
The company was founded in June 2015 by Mr Laidlaw, a former chief executive of energy firm Centrica, to focus on investing in large oil and gas portfolios.
It now has oil and gas interests in the UK, Norway, the Netherlands, Germany, North Africa and the Asia-Pacific region. Its UK offshore oil and gas assets are managed from offices on North Esplanade West, Aberdeen.
Neptune operates the Cygnus Alpha and Cygnus Bravo facilities in the southern UK North Sea.
These produce gas from the Cygnus field, Britain’s single largest producing gas asset.
In the central North Sea Neptune is developing the Seagull oil and gasfield alongside partners BP and Japex. Seagull is due to come onstream this year.
The London-headquartered firm also has a working interest in the Isabella exploration discovery in the central North Sea.
Eni returns to Aberdeen
Rome-based Eni has been active in the UK since 1964. Its current business in Britain spans exploration and production, liquefied natural gas, refining and chemicals, among others. The company shut a North Sea oil and gas-focused office in Aberdeen in 2004.
Subject to clearing certain hurdles, the UK business is expected to change hands by the end of Q1 2024.
Eni chief executive Claudio Descalzi said: “This transaction delivers to Eni a high-quality and low carbon intensity portfolio. 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.