Neptune divests non-core assets portfolio in Norway

Neptune Energy today announced that it has signed Sale and Purchase agreements with OKEA ASA and M Vest Energy AS whereby Neptune will divest its non-operated working interests in three producing fields and two export pipelines on the Norwegian Continental Shelf.

The assets Neptune is divesting include the producing Draugen, Brage and Ivar Aasen fields, as well as the Edvard Grieg Oil Pipeline and the Utsira High Gas Pipeline, located on the NCS. As a result of this transaction, Neptune will no longer hold participating interests in these assets.

OKEA is to acquire a 2.2% interest in the Ivar Aasen Unit.

M Vest is to acquire a 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% in the Utsira High Gas Pipeline. The transaction underpins Neptune’s corporate strategy to focus its portfolio on core areas. In Norway these are the Gjøa, Gudrun, Njord, Dugong and Snøhvit fields.

The agreed consideration totals up to $35 million. All decommissioning liabilities will be transferred to the buyers.

The effective date for the agreements is 1 January 2022, subject to Ministry approval.

Natixis acted as financial adviser to Neptune.

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