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transferred to Vår Energi.
“Vår Energi is one of the fastest growing E&P companies in the world and is on
track to nearly double production by end-2025. The acquisition of Neptune Norway
is an important step to this end. Neptune Norway’s complementary assets and
highly skilled organisation are a perfect fit to Vår Energi. We will work as one
strong team, a company committed to delivering high value barrels from one of
the most attractive oil and gas regions in the world with low cost and low
emissions. The transaction is cash generative from day one supporting attractive
and predictable dividends going forward,” says Nick Walker, CEO of Vår Energi.
The combined company is the second largest independent E&P company on the
Norwegian Continental Shelf (NCS) and the second largest supplier of gas from
Norway to Europe. The Transaction adds scale, diversification, and further
longevity to Vår Energi’s portfolio which is targeting production of around 400
kboepd by end-2025. The completion of the Transaction, which was announced on 23
June 2023, follows fulfilment of all closing conditions including relevant
regulatory approvals.
Growth and sustained value creation
Vår Energi’s growth strategy is centred around four hub areas with ownership in
a total of 203 NCS licences, including 47 producing fields, of which 7 are
operated, following the Transaction. Total combined Proved plus Probable (2P)
reserves are approximately 1.3 billion barrels of oil equivalent¹, with an
attractive early phase project portfolio and exploration opportunities
supporting sustained value creation long term. The transaction is expected to
result in significant synergies in excess of USD 300 million (post-tax) over
time, from a robust development and exploration portfolio, improved asset
utilisation and commercial optimisation of gas sales.
A highly competent and dedicated team of 1,300 employees will deliver on the
growth strategy, supported by strong safety performance and a clear path for
decarbonisation of operations, to drive long-term competitiveness and
profitability.
The effective date of the Transaction is 1 January 2023. The Transaction was
financed through available liquidity and credit facilities, and the net cash
consideration paid upon completion less cash available in Neptune Norway was
approximately USD 1.2 billion.
Integration of Neptune Norway
The acquisition will be implemented in the following stages:
· As from closing 31 January 2024, Neptune Norway will operate as a fully
owned subsidiary of Vår Energi and change the name to Vår Energi Norge AS
· From 1 May 2024, all employees of Vår Energi Norge AS will be fully
integrated into the Vår Energi ASA organisation
· The companies will as per normal practice on the NCS consolidate their
businesses, a process that is contemplated as a statutory merger planned to
complete in the second half of 2024
Overview of the acquired assets
· Ownership in 12 producing assets, three of which are operated by Neptune
Norway and seven by Equinor, further strengthening the partnership between Vår
Energi and Equinor
· Production of ~66 kboepd in 2023, 265 million barrels of oil equivalent of
2P reserves¹ and several near-term growth opportunities
· Material gas share in the portfolio amounting to 58% of production in 2023
· Ownership in the strategically important Snøhvit gas field and the
associated Melkøya LNG plant, amplifying Vår Energi’s position in the Barents
Sea Area with access to a long-life asset expected to produce towards 2050 and
ownership in the only existing gas export infrastructure in the area
· Strong hub strategy alignment across the Neptune Norway portfolio with
increased presence and ownership in the Njord, Fram and Gjøa areas. Attractive
pipeline of early phase projects including Dugong, Fram Sør, Ofelia, Calypso and
numerous infrastructure-led exploration opportunities around existing hubs
Vår Energi will host a Capital Markets Update on the 13 March 2024 to give an
update on the Company’s strategy for growth and value creation and plans for
delivering on the long-term goals as a combined company.
- 2022 Annual Statement of Reserves
About Vår Energi
Vår Energi is a leading independent upstream oil and gas company on the
Norwegian continental shelf (NCS). We are committed to deliver a better future
through responsible value driven growth based on over 50 years of NCS
operations, a robust and diversified asset portfolio with ongoing development
projects, and a strong exploration track record. Our ambition is to be the
safest operator on the NCS, the partner of choice, an ESG leader with a tangible
plan to reduce emissions from our operations by 50% within 2030.
Vår Energi has around 1,300 employees and equity stakes in 47 producing fields.
We have our headquarters outside Stavanger, Norway, with offices in Oslo,
Hammerfest and Florø. To learn more, please visit varenergi.no.
Contact
Investor relations
Ida Marie Fjellheim, Head of Investor Relations
+47 90509291
ida.fjellheim@varenergi.no
Media relations
Andreas Wulff, Communication Manager
+47 92616759
andreas.wulff@varenergi.no
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