Neptune Energy Group has announced the completion of the acquisition of France's Engie E&P International (EPI). The private-equity producer now has global reach and access to a balanced portfolio of oil and gas production.
For undisclosed terms, Neptune said it acquired Engie exploration arm and enables Neptune to become an international independent E&P company across the North Sea, North Africa and South East Asia, producing 154,000 net barrels of oil equivalent per day in 2017.
Sam Laidlaw, Executive Chairman of Neptune Energy Group, said: “I am pleased to announce the completion of this significant achievement, which is the result of some three year’s work and marks a new beginning for Neptune Energy. Building on the success and hard work of the EPI team and leveraging its strong portfolio of assets, we aim to generate long term sustained value for the countries in which we operate, our employees and for our investors in order to create a leading international independent E&P company within the next 5 years."
The North Sea region benefits from a strong operating base in strategic assets such as Cygnus in the UK and Gjøa in Norway, while Neptune is the leading offshore operator in the Netherlands. North Africa and Southeast Asia provide near-term gas volume growth into strengthening markets while Germany offers a strong, long-life oil production base.
Deirdre Michie, the chief executive at trade group Oil & Gas U.K., said the spending effort from Neptune was a testament to the legacy of North Sea operations.
"This transaction highlights that the U.K. oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years," she said in an emailed statement.
Neptune's oil and gas arm was established three years ago by equity funds Carlyle Group and CVC Capital Partner, and now China Investment Corp.