NEO Energy to acquire North Sea portfolio from ExxonMobil

Feb. 24, 2021
NEO Energy has agreed to acquire a portfolio of non-operated North Sea oil and gas assets from ExxonMobil. Following completion, NEO expects proforma 2021 production to be 70,000 boe/d.

NEO Energy has agreed to acquire a portfolio of non-operated North Sea oil and gas assets from ExxonMobil. Following completion, NEO expects proforma 2021 production to be 70,000 boe/d and to grow organically to more than 80,000 boe/d in 2024 through ongoing field developments.

The acquired portfolio consists of 21 assets, including 14 fields and several infrastructure positions. The fields are divided into the following hubs: Gannet cluster (50%), Elgin-Franklin fields (4.38%), Shearwater area (including Fram, Starling, Merganser, Scoter, 44%-72%), Penguins redevelopment (50%), Nelson (21.23%), and ETAP (Mirren, Madoes, 21-25%).

The agreement is valued at more than $1 billion. Additional contingent considerations of $300 million are possible based on commodity prices. The transaction, subject to approvals from relevant authorities and regulatory consents, is expected to complete by mid-2021.

The acquired fields are operated by Shell, BP and Total. NEO will become Shell’s largest partner in the UK Central and Northern North Sea.