Eni in Exclusive Talks to Acquire Neptune Energy, Valued at $5-6 Billion

Eni has entered into exclusive discussions to acquire Neptune Energy, a privately-owned gas and oil producer supported by private equity. According to industry sources cited by Reuters, these talks have commenced after several months of negotiations in 2022, which previously broke down due to price disagreements. Eni has now agreed to a slightly increased takeover offer for Neptune, valuing the company between $5 billion and $6 billion, as per the same sources. This adjustment in the offer indicates significant progress in the negotiations, although there is no guarantee that an agreement will be reached. During the first quarter of 2023, Neptune reported a production of approximately 142,000 barrels of oil equivalent per day (boepd), with three-quarters of this production comprising gas. Neptune operates in various countries, including Norway, the UK, Indonesia, Algeria, the Netherlands, among others. The company is financially backed by China Investment Corporation, as well as funds advised by Carlyle Group and CVC Capital Partners. In March 2023, Bloomberg News disclosed that Neptune’s owners were working with advisors such as Goldman Sachs Group and Rothschild & Co. to explore different options for the company, including a potential sale. Earlier this year, Neptune, along with its partners Vår Energi, Sval Energi, and DNO, initiated production from the Fenja offshore oil and gas field in Norway. Situated 120km north of Kristiansund, at a water depth of 325m, the Fenja field is projected to have a gross production capacity of 35,000 boepd.