Vår Energi ASA has completed the acquisition of Neptune Energy Norge AS with 100% of the shares in Neptune Norway transferred to Vår Energi. 

CEO of Vår Energi, Nick Walker says:
"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."

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 

KeyFacts Energy: Vår Energi Norway country profile