finance

Oil explorer pulls plug on £200 million North Sea deal



Oil and gas explorer Neptune Energy has pulled out of its £200 million deal to buy the North Sea assets of Energean Oil and Gas.

The acquisition agreed in October included a 25% stake in the Glengorm field, which had been hailed as the largest UKCS discovery for 10 years with an estimated 250 million barrels.

As part of the axed deal, Neptune, chaired by former Centrica CEO Sam Laidlaw, had also agreed to buy Edison’s 15% stake in the Nova and 10% in the Dvalin gas developments in the Norwegian sector.

Chinese firm CNOOC has a 50% stake in Glengorm, which it discovered in January in 2019. Total owns 25%. Energean Oil & Gas agreed to buy Edison in July last year and was to sell on its UK and Norwegian assets. Energean said it would now retain Edison’s interests which also include 10% of the Central North Sea Isabella lean gas, condensate and light oil discovery announced in March.

In a statement today, Neptune said: “Neptune Energy today announced that it has agreed to terminate the agreement to acquire Edison E&P’s UK and Norwegian subsidiaries from Energean Oil and Gas. Neptune will pay a $5 million termination fee to Energean.

“Neptune will continue to pursue its pipeline of global development projects and other growth opportunities.”



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