Neptune Completes VNG Norge Integration

Monday, December 10, 2018

Neptune Energy announced Monday it has completed the integration with the former VNG Norge business. The integrated business, Neptune Energy Norge, will be among the top five independent producers on the Norwegian Continental Shelf by equity production and will become the operator of the Fenja field development project in the Norwegian Sea.

The merger between Neptune Energy Norge AS and VNG Norge, completed as of December 4, will bring the entire business of former VNG Norge – including participating interests in production licenses, operatorships and employees – into Neptune Energy Norge.

The organization will be led by managing director Odin Estensen as of January 2, 2019.

Fenja (PL 586), an oil and gas field under development in the Norwegian Sea, is Neptune's first operated development project in Norway. It lies 120 kilometers north of Kristiansund, with estimated recoverable resources in excess of 100 million barrels oil equivalent (Pil reservoir). The field is a subsea development with tie-back to Njord A. First oil is targeted for 2021.

Licence partners in PL 586 include operator Neptune Energy (30 percent), Point Resources (45 percent), Suncor (17.5 percent) and Faroe Petroleum (7.5 percent).

Anne Botne, Country Director for Neptune Energy, said, "The transaction and integration of former VNG Norge adds a strong team as well as competitive growth assets to our portfolio on the Norwegian continental shelf.

"[Fenja] will feature innovative solutions enabling production through long distance tiebacks to existing infrastructure, thus capturing value and reducing emissions in line with our strategy.

"By leveraging Neptune Energy's operational experience and existing contracts, we aim to realize additional opportunities and synergies from Fenja to our two other operated development projects in Norway, Cara and P1 in the North Sea."

(Image: Neptune Energy)

Categories: Mergers & Acquisitions Subsea Activity Europe

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