Nov 12, 2021

Why will Neptune Energy divest its Norwegian portfolio?

Energy
Utilities
Gas
NeptuneEnergy
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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