NEO Energy has struck a deal to buy JX Nippon Exploration and Production (U.K.) Limited from its Japan-based parent company JX Nippon Oil & Gas Exploration Corporation, part of Eneos Group.
JX UK holds non-operated interests in several producing fields and associated infrastructure in the UK North Sea including a 20% interest in the Mariner field and an 18% interest in the Culzean field. The transaction does not include JX UK’s interests in the Andrew Area.
According to the Japanese company, the purchase price is based on the enterprise value of USD 1.655 billion as at March 31, 2021, after adjustment for debt, working capital, etc.
Hiroshi Hosoi, JX President and CEO said: "This transaction is part of our ongoing global portfolio management strategy to strengthen our upstream portfolio by selling projects that are no longer critical to our business. In line with this strategy, we have decided to sell our UK business to NEO which is an emerging upstream company."
"JX is part of the ENEOS Group and is committed to the Group's "Long Term Vision for 2040", which includes contributing to the development of a low carbon society. In line with this Long Term Vision, we have been investing in various sustainable projects in Vietnam, Malaysia, Australia and the USA, including the Petra Nova CCUS project, one of the largest carbon capture projects in the USA.
"This transaction is another step towards the Group's Long Term Vision as we continue to contribute to the development of a low carbon society."
NEO Energy said the transaction was subject to approvals from the relevant authorities and regulatory consents.
HitecVisionbacked-NEO Energy has been expanding its UK North Sea portfolio through acquisitions. The company last year acquired several UK North Sea fields from Total, now TotalEnergies. In July 2021, it completed the acquisition of North Sea-focused firm Zennor Petroleum.
In February 2021, NEO agreed to buy ExxonMobil's North Sea fields in a deal worth more than $1 billion. This transaction has yet to complete, and the UK oil and gas regulator OGA The UK oil and gas industry regulator Oil and Gas Authority (OGA) in October opened an investigation into the proposed sale by ExxonMobil of 13 producing fields, specifically Elgin Franklin, to NEO, amid concerns the transaction is not progressing as quickly as expected.