The Strategist

Italy's Eni buys UK oil and gas company Neptune Energy for $5B



06/26/2023 - 03:15



The Italian energy corporation Eni purchased British Neptune Energy for $4.9 billion. Eni, which owns 63% of the Norwegian oil and gas business Var Energi, also participated in the transaction. The transaction might be finished in the first quarter of 2024 once the companies recceive regulatory permission.



Petar Milošević
Petar Milošević
The prospect of such a merger has been considered for some months. Neptune owns properties and fields throughout Australia, Indonesia, Algeria, Europe, and North America. According to the terms of the arrangement, Eni will purchase the majority of the business for $2.6 billion. Var Energi will pay $2.3 billion to acquire the Norwegian Neptune unit, and the German Neptune unit will be split off and sold separately.

Eni claims that it would be able to achieve its goal of increasing gas production by 60% by 2030 by acquiring Neptune Energy.

Chevron, a US energy firm, paid $7.6 billion in May to acquire PDC Energy, an oil and gas company. Following record profits for oil and gas corporations last year, experts predict more mergers and acquisitions in the energy sector.

source: reuters.com




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