Why will Neptune Energy divest its Norwegian portfolio?

Neptune Energy has made plans to offload some of its Norwegian energy assets to OKEA and M V Energy AS

Founded in 2015, Neptune Energy operates a diverse portfolio of gas power developments with operations in Europe, Africa and Asia Pacific (APAC). The company is responsible for some crucial exploration and development in Norway and is a partner in several producing fields. But the company has recently agreed to divest some of its non-core assets from these fields, including Draugen, Brage and Ivar Aasen production, its Edvard Grieg Oil Pipeline and the Utsira High Gas Pipeline. 

Neptune has recently announced it received a Gold Standard from the Oil & Gas Methane Partnership (OGMP) for its ambitious sustainability targets and its strategy to reach net-zero emissions by 2030. The award is given to those that have feasible plans in place to decrease methane emissions by more than 45%. 

Where will Neptunes Assets go? 

The Norwegian assets will be sold to M Vest Energy AS, an organisation with the long-term goal of being a fully functioning energy business, which became a petroleum and energy license holder for the Norwegian Continental Shelf. M Vest will achieve its goal through strategic innovations and the acquisition of specialist energy expertise as it competes with the industry giants. 

M Vest is set to acquire 0.8% interest in the Ivar Aasen Unit, 7.56% in the Draugen field, 4.4% in the Brage Unit, 1.2% in the Edvard Grieg Oil Pipeline and 1.8% of the Utsira High Gas Pipeline, from the deal with Neptune. 

Another organisation, OKEA—a group that manages and develops resources—will also receive a 2.2% interest in the company’s Ivar Aasen Unit. The overall value of divested assets to be considered is around US$35mn with the buyers taking responsibility for decommissioning. 


For more energy insights, check out the latest issue of Energy Digital Magazine.

Share

Featured Articles

UK Government awards £54mn in heat network funding

Funding will support the development of schemes in London, Bedfordshire and Woking that use low-carbon heat sources

Shell posts $11.5bn second quarter profit

Shell's earnings fuelled by ongoing price rises and geopolitical instability as the energy major places greater focus on natural gas investments

bp opens first electric truck fast-charging facilities

Operated by bp’s Aral brand, the retail site at Schwegenheim in Rheinland-Pfalz has two 300kw chargers intended for electric trucks

Shell commits to developing Jackdaw gas field in North Sea

Oil & Gas

Prospex Energy raises £1.87m for Selva gas field development

Oil & Gas

Shanghai Electric Group launches low carbon business

Utilities