Neptune Energy to buy Norwegian oil producer

Sam Laidlaw
Sam Laidlaw

Neptune Energy Group has clinched a deal to buy Norwegian oil and gas producer VNG Norge.

London-headquartered Neptune is acquiring the firm from VNG AG, a German natural gas wholesaler and energy service provider.

The purchase is expected to go through this year.

VNG Norge has 42 licences, five producing fields and three development projects, including a 30% stake in Fenja.

Net production for 2017 was an estimated 4,000 barrels of oil equivalent per day with a significant ramp up by 2022 as new capacity comes onstream.

It had reserves of more than 50 million barrels at the end of 2017.

Neptune executive chairman Sam Laidlaw said: “We are extremely pleased to announce the signing of the SPA to acquire VNG Norge, which provides us with our first acquisition since the completion of our purchase of Engie E&P, and is directly in line with our strategy of consolidating our position in key jurisdictions with high quality and complementary assets.

“The addition of further long-life oil development opportunities in Norway, through one of our key production hubs, as well as adjacent production and exploration interests, is a further step towards delivering our ambition to create a leading international independent E&P company of significant scale.

“I am also pleased that VNG Norge will bring a strong team in Norway, that we aim to integrate with our existing business, to play a full part in the future growth and success of the Neptune Energy Group.”