Neptune Energy Group, backed by funds advised by The Carlyle Group, CVC Capital Partners Fund VI and a group of co-investors, are to acquire a majority shareholding in ENGIE E&P International (EPI) from France’s ENGIE Group for USD3.9 billion (EUR3.6 billion).
The proposed transaction is subject to relevant consultation processes and customary regulatory approvals with completion expected by early Q1 2018.
EPI is a large global E&P business focused on North West Europe and with operations in North Africa and South East Asia. EPI produces more than 150 kboepd and has proven and probable reserves of 672 mmboe. The assets are spread across the spectrum of the value chain from pre-development and development through to long-life production. EPI’s production mix is equally weighted between oil and gas.
The EPI business that would be acquired by Neptune includes significant North Sea operations in Norway, including operatorship of the Gjøa field, in the Netherlands where EPI is the number one offshore operator and the UK, with operatorship of the recently commissioned Cygnus gas field, as well as onshore Germany, and the Jangkrik LNG project in Indonesia.
In all, EPI operates some 60 producing oil and gas fields. It also includes the large Touat gas development underway in Algeria, where ENGIE would retain a substantial interest alongside Neptune.
Neptune was launched in June 2015 to focus on investing in large oil and gas portfolios that may come available as a result of energy market dynamics.
