Nov 12, 2021

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. 

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