Neptune Energy dives deeper into North Sea with Edison deal

Neptune Energy, the oil and gas firm chaired by former Centrica boss Sam Laidlaw, has struck a deal to acquire Edison E&P’s UK and Norwegian assets for $250 million (£199m) in a move that significantly boosts its North Sea presence.

Neptune Energy has described the deal as an important bolt-on acquisition. Picture: Neptune Energy

The agreement with Mediterranean-focused Energean Oil & Gas is contingent on Energean completing its proposed acquisition of Edison E&P.

Energean will sell Edison’s UK and Norwegian units for $250m, with additional cash contingent consideration of up to $30m.

The assets to be sold include interests in the Nova and Dvalin gas developments offshore Norway, and in the UK, and interests in the producing Scott, Telford, Tors and Wenlock fields.

The deal also includes the Glengorm gas condensate discovery in the Central North Sea, close to Neptune’s operated Seagull project.

Jim House, chief executive of Neptune Energy, said: “This is an important bolt-on acquisition that is in line with our strategy of consolidating our position in key areas with high quality and complementary assets.

“The assets are an excellent fit with our North Sea portfolio. Nova and Dvalin are expected to add 12,000 boepd [barrels of oil equivalent per day] to our production base over the next two years and Glengorm adds significant potential for the longer term.”

The deal is subject to customary regulatory approvals, with completion expected early in 2020, London-headquartered Neptune added.

In a move to expand in the eastern Mediterranean region, Energean in July agreed to buy the oil and gas division of Italian energy outfit Edison for up to $850 million.